Published on 9/27/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.08 million trigger autocallable contingent yield notes on Dow, Nasdaq
Chicago, Sept. 27 – HSBC USA Inc. priced $1.08 million of trigger autocallable contingent yield notes due Feb. 7, 2025 linked to the least performing of the Dow Jones industrial average and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 8.5% per year if each index closes at or above its coupon barrier, 70% of its initial level, on the related observation date.
The notes will be automatically called at par plus coupon if each index closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and the final level of each index is greater than or equal to the downside threshold level, 70% of the initial level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1% for every 1% that the final level of the least performing index is less than its initial level.
HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying indexes: | Dow Jones industrial average, Nasdaq-100 index
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| Amount: | $1,077,100
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| Maturity: | Feb. 7, 2025
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| Coupon: | 8.5% per year, paid quarterly, if each index closes at or above its coupon barrier on any related observation date
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| Price: | Par of $10
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| Payout at maturity: | Par plus final coupon unless any index finishes below downside threshold level, in which case 1% loss for each 1% decline of laggard index from initial level
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| Call: | Automatically at par plus coupon if each index closes at or above initial level on any quarterly call observation date after six months
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| Initial levels: | 35,089.74 for Dow, 14,694.35 for Nasdaq
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| Coupon barrier levels: | 24,562.82 for Dow, 10,286.05 for Nasdaq; 70% of initial levels
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| Downside thresholds: | 24,562.82 for Dow, 10,286.05 for Nasdaq; 70% of initial levels
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| Pricing date: | Feb. 4
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| Settlement date: | Feb. 9
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| Agents: | HSBC Securities (USA) Inc. and UBS Financial Services Inc.
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| Fees: | 0%
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| Cusip: | 40390L727
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