Published on 4/8/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $2.16 million autocallable barrier notes with step-up premium on three indexes
By Wendy Van Sickle
Columbus, Ohio, April 8 – HSBC USA Inc. priced $2.16 million of 0% autocallable barrier notes with step-up premium due April 8, 2027 linked to the worst performing of the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if each index closes at or above its initial level on any semiannual observation date after a year. The premium is 10% per year.
If the notes are not called, the payout will be par unless any index has finished below its 70% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with step-up premium
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index, Dow Jones industrial average
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| Amount: | $2.16 million
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| Maturity: | April 8, 2027
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par unless any index has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing index from its initial level
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| Call: | At par plus a call premium if each index closes at or above its initial level on any semiannual observation date after a year; premium is 10% per year
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| Initial index levels: | 14,820.64 for Nasdaq, 2,046.043 for Russell, 34,641.18 for Dow
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| Barrier levels: | 10,374.448 for Nasdaq, 1,432.2301 for Russell, 24,248.826 for Dow; 70% of initial levels
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| Pricing date: | April 5
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| Settlement date: | April 8
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.625%
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| Cusip: | 40439JQ40
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