Published on 10/19/2021 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.5 million callable contingent income barrier notes on Stoxx Banks, Nasdaq-100
By Kiku Steinfeld
Chicago, Oct. 19 – HSBC USA Inc. priced $1.5 million of callable contingent income barrier notes due July 30, 2026 linked to the Euro Stoxx Banks index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 9% if each index closes at or above the coupon trigger level, 70% of the initial level, on the observation date for that quarter.
The notes will be callable at par plus any coupon due on any quarterly observation date after six months.
If the notes are not called and each index finishes at or above the 70% barrier level, the payout at maturity will be par. Otherwise, investors will lose 1% for each 1% decline of the least-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: | Euro Stoxx Banks index, Nasdaq-100
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| Amount: | $1.5 million
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| Maturity: | July 30, 2026
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| Coupon: | 9%, payable quarterly if each index closes at or above coupon trigger level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par; otherwise, 1% loss for each 1% decline of the least-performing index from initial level
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| Call option: | At par plus any coupon on any quarterly observation date after six months
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| Initial levels: | 92.51 for Euro Stoxx Banks and 14,956.97 for Nasdaq
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| Coupon trigger: | 64.757 for Euro Stoxx Banks and 10,469.879 for Nasdaq, 70% of initial prices
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| barrier levels: | 64.757 for Euro Stoxx Banks and 10,469.879 for Nasdaq, 70% of initial prices
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| Pricing date: | July 27
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| Settlement date: | July 30
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3%
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| Cusip: | 40439JGX7
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