Published on 11/22/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $6.45 million trigger autocallable notes tied to a basket of indexes
By William Gullotti
Buffalo, N.Y., Nov. 22 – HSBC USA Inc. priced $6.45 million of 0% trigger autocallable notes due Nov. 22, 2028 tied to a weighted index basket, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Euro Stoxx 50 index with a 40% weight, the Nikkei 225 index with a 25% weight, the FTSE 100 index with a 17.5% weight, the Swiss Market index with a 10% weight and the S&P/ASX 200 index with a 7.5% weight.
The notes will be called at par plus 10.35% per year if the basket closes at or above its initial level on any quarterly observation date after one year.
If the basket finishes at or above its initial level, the notes will be called at maturity at par plus 51.75%.
If the basket declines but finishes at or above the downside threshold, 75% of the initial level, the payout at maturity will be par. Otherwise, investors will lose 1% for each 1% decline of the basket from its initial level.
HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger autocallable notes
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| Underlying indexes: | Euro Stoxx 50 index (40% weight), Nikkei 225 index (25% weight), FTSE 100 index (17.5% weight), Swiss Market index (10% weight), S&P/ASX 200 index (7.5% weight)
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| Amount: | $6,449,200
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| Maturity: | Nov. 22, 2028
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If the basket finishes at or above its initial level, the notes will be called at par plus 51.75%; if the basket declines but not below downside threshold, par; otherwise, 1% loss for each 1% decline of basket from initial level
|
| Call: | After one year, at par plus 10.35% per year if basket closes at or above initial level on any quarterly observation date
|
| Initial levels: | 4,340.77 for Euro Stoxx 50, 33,585.2 for Nikkei 225, 7,504.25 for FTSE 100, 10,737.37 for Swiss Market, 7,049.387 for S&P/ASX 200
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| Downside threshold: | 75% of initial level
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| Pricing date: | Nov. 17
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| Settlement date: | Nov. 22
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| Agents: | HSBC Securities (USA) Inc. and UBS Financial Services Inc.
|
| Fees: | 2.5%
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| Cusip: | 40443B528
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