Published on 5/23/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.87 million callable contingent income barrier notes on three indexes
By William Gullotti
Buffalo, N.Y., May 23 – HSBC USA Inc. priced $1.87 million of callable contingent income barrier notes due May 23, 2025 linked to the least performing of the Dow Jones industrial average, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.6% if each index closes at or above its trigger level, 75% of its initial level, on the observation date for that period.
The notes will be callable at par on any quarterly call observation date after one year.
The payout at maturity will be par plus the final coupon if each index finishes at or above its trigger level.
If the worst performer finishes below its trigger level but at or above its 60% barrier level, the payout will be par. Otherwise, investors will be fully exposed to the decline of the lowest performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes
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| Underlying indexes: | Dow Jones industrial average, Nasdaq-100 index, Russell 2000 index
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| Amount: | $1,866,000
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| Maturity: | May 23, 2025
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| Coupon: | 10.6%, payable quarterly if each index closes at or above trigger level on determination date for that period
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above trigger level, par plus final coupon; if worst performer finishes below trigger level but at or above barrier level, par; otherwise, exposure to decline of worst-performing index from initial level
|
| Call option: | At par on any quarterly call observation date after one year
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| Initial level: | 31,490.07 for Dow, 11,928.31 for Nasdaq, 1,774.846 for Russell
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| Trigger levels: | 23,617.5525 for Dow, 8,946.2325 for Nasdaq, 1,331.1345 for Russell; 75% of initial levels
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| Barrier levels: | 18,894.042 for Dow, 7,156.986 for Nasdaq, 1,064.9076 for Russell; 60% of initial levels
|
| Pricing date: | May 18
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| Settlement date: | May 23
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
|
| Cusip: | 40439J4T9
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