Published on 9/27/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $570,000 14% autocallable contingent income barrier notes on indexes
By Kiku Steinfeld
Chicago, Sept. 27 – HSBC USA Inc. priced $570,000 of autocallable contingent income barrier notes due March 20, 2026 linked to the Dow Jones industrial average, Russell 2000 index and S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 14%, paid monthly, if each underlying index closes at or above its 80% barrier level on the related monthly observation date.
The payout at maturity will be par if the worst performing index ends at or above its 80% barrier value. Otherwise investors will lose 1% for every 1% that the worst performing index declines.
The securities will be called automatically starting on April 17, 203 at par if the level of the worst performing index is greater than or equal to its initial level on a monthly observation date.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index and S&P 500 index
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| Amount: | $570,000
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| Maturity: | March 20, 2026
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| Coupon: | 14%, paid monthly, if each underlying index closes at or above its 80% barrier level on the related monthly observation date
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| Price: | Par
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| Payout at maturity: | If worst performing index finishes at or above the barrier level par; 1% loss for every 1% that worst performing index declines if it ends below barrier value
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| Call: | Automatically starting on April 17, 203 at par if the level of the worst performing index is greater than or equal to its initial level on a monthly observation date
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| Initial levels: | 32,155.40 for Dow, 1,776.893 for Russell, 3,919.29 for S&P
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| Coupon barriers: | 25,724.32 for Dow, 1,421.5144 for Russell, 3,135.432 for S&P, 80% of initial levels
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| Barrier levels: | 25,724.32 for Dow, 1,421.5144 for Russell, 3,135.432 for S&P, 80% of initial levels
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| Pricing date: | March 14, 2023
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| Settlement date: | March 20, 2023
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.6%
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| Cusip: | 40441X2E9
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