Published on 5/1/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $425,000 callable contingent income barrier notes on three indexes
Chicago, May 1 – HSBC USA Inc. priced $425,000 of callable contingent income barrier notes due Dec. 14, 2023 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 9% if each index closes at or above its coupon 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 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: | $425,000
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| Maturity: | Dec. 14, 2023
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| Coupon: | 9% annual rate, payable quarterly 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, 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 level: | 32,272.79 for Dow, 12,269.78 for Nasdaq, 1,850.856 for Russell
|
| Coupon trigger levels: | 22,590.953 for Dow, 8,588.846 for Nasdaq, 1,295.5992 for Russell; 70% of initial levels
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| Barrier levels: | 22,590.953 for Dow, 8,588.846 for Nasdaq, 1,295.5992 for Russell; 70% of initial levels
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| Pricing date: | June 9, 2022
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| Settlement date: | June 14, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.875%
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| Cusip: | 40441XAR1
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