Published on 5/31/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $31.69 million autocallable market-linked step-up notes on index basket
By William Gullotti
Buffalo, N.Y., May 31 – HSBC USA Inc. priced $31.69 million of 0% autocallable market-linked step-up notes due May 29, 2026 linked to a weighted basket of indexes, according to a 424B2 with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with a 40% weight, the FTSE 100 index with a 20% weight, the Nikkei Stock Average index with a 20% weight, the Swiss Market index with a 7.5% weight, the S&P/ASX 200 with a 7.5% weight and the FTSE China 50 index with a 5% weight.
The notes will be called at par plus an annual call premium of 10.95% if the basket closes at or above its initial level on any annual call date.
If the basket finishes above the step-up value, 140% of the initial level, the payout at maturity will be par of $10 plus the basket gain.
If the basket finishes flat or gains by up to the step-up level, the payout will be par plus the step-up payment of 40%.
Investors will be fully exposed to any basket decline.
BofA Securities, Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying indexes: | Euro Stoxx 50 index (40% weight), FTSE 100 index (20% weight), Nikkei Stock Average index (20% weight), Swiss Market index (7.5% weight), S&P/ASX 200 (7.5% weight), FTSE China 50 index (5% weight)
|
| Amount: | $31,694,450
|
| Maturity: | May 29, 2026
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| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If the basket finishes above the step-up level, par plus the basket gain; if the basket finishes flat or gains up to the step-up level, par plus 40%; otherwise, full exposure to loss
|
| Call: | At par plus 10.95% per year if the basket closes at or above its initial level on any annual observation date
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| Initial levels: | 4,269.64 for Euro Stoxx 50, 7,570.87 for FTSE 100, 30,801.13 for Nikkei, 11,325.26 for Swiss Market, 7,138.159 for S&P/ASX, 12,195.65 for FTSE China 50
|
| Step-up value: | 140% of initial level
|
| Pricing date: | May 25
|
| Settlement date: | June 2
|
| Underwriter: | BofA Securities, Inc.
|
| Fees: | 2%
|
| Cusip: | 40443B825
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