Published on 8/3/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.36 million barrier participation notes with call feature on three indexes
By William Gullotti
Buffalo, N.Y., Aug. 3 – HSBC USA Inc. priced $1.36 million of 0% barrier participation notes with call feature due Aug. 2, 2027 linked to the least performing of the Russell 2000 index, the S&P 500 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 21% if each index closes at or above its initial level on July 28, 2023.
If the notes are not called and each index finishes at or above its initial level, the payout at maturity will be par plus 200% of the return of the least performing index.
If any index falls but each index finishes at or above its 70% barrier level, the payout will be par.
Otherwise, investors will be fully exposed to the decline of the least performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Barrier participation notes with call feature
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| Underlying indexes: | Russell 2000 index, S&P 500 index, Dow Jones industrial average
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| Amount: | $1,357,000
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| Maturity: | Aug. 2, 2027
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| Coupon: | 0%
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above initial level, par plus 200% of lowest performer’s return; if any index falls but each finish at or above barrier level, par; otherwise, investors will be fully exposed to the decline of the least performing index from its initial level
|
| Call: | Automatically at par plus 21% if each index closes at or above its initial level on July 28, 2023
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| Initial levels: | 1,848.339 for Russell, 4,023.61 for S&P, 32,197.59 for Dow
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| Barrier levels: | 70% of initial levels
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| Pricing date: | July 27
|
| Settlement date: | Aug. 1
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| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.65%
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| Cusip: | 40441XEV8
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