Published on 1/17/2024 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $10.85 million autocallable Stars tied to weighted index basket
By Wendy Van Sickle
Columbus, Ohio, Jan. 17 – HSBC USA Inc. priced $10.85 million autocallable Strategic Accelerated Redemption Securities due Jan. 28, 2027 linked to a weighted basket of indexes, 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 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 index with a 7.5% weight and the FTSE China 50 index with a 5% weight.
The notes will be automatically called at an annualized call premium of 11.5% if the closing level of the basket is greater than or equal to its initial level on any annual valuation date, including maturity.
If the notes are not called, investors will lose 1% for each 1% decline in the basket.
BofA Securities, Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable Strategic Accelerated Redemption Securities
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| 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 index (7.5% weight), FTSE China 50 index (5% weight)
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| Amount: | $10,848,790
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| Maturity: | Jan. 28, 2027
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | Full exposure to loss
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| Call: | At par plus 11.5% annualized if the closing level of the basket is greater than or equal to its initial value on any annual valuation date, including maturity
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| Initial levels: | 4,442.28 for Euro Stoxx 50, 7,576.59 for FTSE 100, 35,049.86 for Nikkei Stock Average, 11,153.62 for Swiss Market, 7,506.026 for S&P/ASX 200, 10,495.1 for FTSE China 50
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| Pricing date: | Jan. 11
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| Settlement date: | Jan. 19
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| Agent: | BofA Securities, Inc.
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| Fees: | 2%
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| Cusip: | 403954688
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