Published on 1/23/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $840,000 callable contingent income barrier notes on three indexes
Chicago, Jan. 23 – HSBC USA Inc. priced $840,000 of callable contingent income barrier notes due April 28, 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 8.57% if each index closes at or above its barrier level, 70% of its initial level, on the observation date for that period.
The notes may be called at par plus any contingent coupon due on any quarterly coupon observation date.
The payout at maturity will be par plus the final coupon if each index finishes at or above barrier level.
If the worst performer finishes below barrier level but not below its 60% trigger 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.
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| 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: | $840,000
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| Maturity: | April 28, 2025
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| Coupon: | 8.57%, payable quarterly if each index closes at or above coupon barrier on determination date for that period
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par plus final coupon; if worst performer finishes below barrier level but at or above trigger level, par; otherwise, exposure to decline of worst performing index from initial level
|
| Call: | At par plus any coupon due on any quarterly call observation date at option of issuer
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| Initial levels: | 33,811.40 for Dow, 1,940.665 for Russell, 13,356.87 for Nasdaq
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| Coupon barrier levels: | 23,667.98 for Dow, 1,358.4655 for Russell, 9,349.809 for Nasdaq; 70% of initial levels
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| Trigger levels: | 20,286.84 for Dow, 1,164.399 for Russell, 8,014.122 for Nasdaq; 60% of initial levels
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| Pricing date: | April 22, 2022
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| Settlement date: | April 27, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40439JX67
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