Published on 9/12/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $512,000 12.65% callable contingent income barrier notes on indexes
Chicago, Sept. 12 – HSBC USA Inc. priced $512,000 of callable contingent income barrier notes due May 31, 2024 linked to the least performing of the Dow Jones industrial average, Nasdaq-100 index and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a quarterly coupon of 12.65% if each index closes above 70% of its initial level on the applicable observation date.
The securities may be called at par starting on Nov. 30, 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: | Callable contingent income barrier notes
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| Underlying indexes: | Dow Jones industrial average, Nasdaq-100 index and Russell 2000 index
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| Amount: | $512,000
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| Maturity: | May 31, 2024
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| Coupon: | 12.65% annual rate, payable quarterly if each index closes above coupon barrier on applicable observation date
|
| 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: | At par starting on Nov. 30, 2022 and on any subsequent quarterly observation date at option of issuer
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| Initial levels: | 32,283.40 for Dow, 12,605.17 for Nasdaq, 1,899.830 for Russell
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| Coupon barriers: | 22,598.38 for Dow, 8,823.619 for Nasdaq, 1,329.881 for Russell, 70% of initial levels
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| Barrier levels: | 22,598.38 for Dow, 8,823.619 for Nasdaq, 1,329.881 for Russell, 70% of initial levels
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| Pricing date: | Aug. 26, 2022
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| Settlement date: | Aug. 31, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.375%
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| Cusip: | 40441XJN1
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