Published on 7/6/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.01 million autocallable contingent income barrier notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, July 6 – HSBC USA Inc. priced $1.01 million of autocallable contingent income barrier notes due July 7, 2025 linked to the least performing of the Nasdaq-100 index, the Dow Jones industrial average 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 8.9% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly coupon observation date after one year.
The payout at maturity will be par plus the final coupon unless any index finishes below its 70% trigger level, in which case 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.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | Nasdaq-100 index, Dow Jones industrial average, Russell 2000 index
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| Amount: | $1,005,000
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| Maturity: | July 7, 2025
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| Coupon: | 8.9%, payable quarterly if each index closes at or above coupon barrier on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above trigger level, par plus coupon; otherwise, exposure to decline of worst-performing index from its initial level
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| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after one year
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| Initial levels: | 11,503.72 for Nasdaq, 1,707.99 for Russell, 30,775.43 for Dow
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| Barrier levels: | 8,052.604 for Nasdaq, 1,195.593 for Russell, 21,542.801 for Dow; 70% of initial levels
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| Trigger levels: | 8,052.604 for Nasdaq, 1,195.593 for Russell, 21,542.801 for Dow; 70% of initial levels
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| Pricing date: | June 30
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| Settlement date: | July 6
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40441XCC2
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