Published on 5/22/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $309,000 8% autocallable contingent income barrier notes on indexes
Chicago, May 22 – HSBC USA Inc. priced $309,000 of autocallable contingent income barrier notes due June 30, 2025 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 monthly coupon of 8% if each index closes above its 70% coupon trigger level on the related observation date.
The securities will be called automatically at par if the level of the worst performing index is greater than or equal to its initial level starting Dec. 27, 2022 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: | $309,000
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| Maturity: | June 30, 2025
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| Coupon: | 8% annual rate, payable monthly if each index closes above coupon trigger level on related 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 at par if the level of the worst performing index is greater than or equal to its initial level starting Dec. 27, 2022 and on any subsequent quarterly observation date
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| Initial levels: | 31,438.26 for Dow, 12,008.24 for Nasdaq, 1,771.742 for Russell
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| Coupon barriers: | 22,006.782 for Dow, 8,405.768 for Nasdaq, 1,240.2194 for Russell, 70% of initial levels
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| Barrier levels: | 22,006.782 for Dow, 8,405.768 for Nasdaq, 1,240.2194 for Russell, 70% of initial levels
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| Pricing date: | June 27, 2022
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| Settlement date: | June 30, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.75%
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| Cusip: | 40441XBD1
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