Published on 5/1/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $590,000 autocallable contingent income barrier notes on three indexes
Chicago, May 1 – HSBC USA Inc. priced $590,000 of autocallable contingent income barrier notes due June 8, 2027 linked to the least performing of the Dow Jones industrial average, Russell 2000 index and Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 7.1%, paid quarterly, if each underlying index closes at or above its 70% barrier level on the related quarterly observation date.
The securities will be called automatically starting on June 5, 2023 at par if the level of the worst performing index is greater than or equal to its initial level and on any subsequent quarterly observation date.
The payout at maturity will be par if the worst performing index ends at or above its 70% barrier value. Otherwise, investors will lose 1% for every 1% that the worst performing index declines.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | Dow Jones industrial average, Russell 2000 index and Nasdaq-100 index
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| Amount: | $590,000
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| Maturity: | June 8, 2027
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| Coupon: | 7.1% annual rate, paid quarterly, if each underlying index closes at or above its 70% barrier level on the related quarterly observation date
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| Price: | Par
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| Payout at maturity: | If worst performing index finishes at or above the barrier level par; 1% loss for every 1% that worst performing index declines if it ends below barrier value
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| Call: | Automatically starting on June 5, 2023 at par if the level of the worst performing index is greater than or equal to its initial level and on any subsequent quarterly observation date
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| Initial levels: | 32,899.70 for Dow, 12,548.03 for Nasdaq, 1,883.053 for Russell
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| Coupon barriers: | 23,029.79 for Dow, 8,783.621 for Nasdaq, 1,318.1371 for Russell, 70% of initial levels
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| Barrier levels: | 23,029.79 for Dow, 8,783.621 for Nasdaq, 1,318.1371 for Russell, 70% of initial levels
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| Pricing date: | June 3, 2022
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| Settlement date: | June 8, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.625%
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| Cusip: | 40441XAG5
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