Published on 4/14/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $191,000 callable contingent income barrier notes on three indexes
Chicago, April 14 – HSBC USA Inc. priced $191,000 of callable contingent income barrier notes due Nov. 17, 2023 linked to the least performing of the Dow Jones industrial average, the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 10.57% if each index closes at or above its trigger level, 70% of its initial level, on the observation date for that period.
The notes will be callable at par on any quarterly call observation date.
The payout at maturity will be par plus the final coupon if each index finishes at or above its 70% barrier level.
Otherwise, investors will be fully exposed to the decline of the worst performer 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, S&P 500 index, Russell 2000 index
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| Amount: | $191,000
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| Maturity: | Nov. 17, 2023
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| Coupon: | 10.57%, payable monthly 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 barrier level, par plus final coupon; otherwise, full exposure to decline of worst performing index from initial level
|
| Call option: | At par on any quarterly call observation date
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| Initial levels: | 31,261.90 for Dow, 3,901.36 for S&P, 1,773.266 for Russell
|
| Trigger levels: | 21,883.33 for Dow, 2,730.952 for S&P, 1,241.2862 for Russell; 70% of initial levels
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| Barrier levels: | 21,883.33 for Dow, 2,730.952 for S&P, 1,241.2862 for Russell; 70% of initial levels
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| Pricing date: | May 20, 2022
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| Settlement date: | May 25, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40439J5F8
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