Published on 2/1/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $800,000 autocallable buffered notes with step-up premium on indexes
By Kiku Steinfeld
Chicago, Feb. 1 – HSBC USA Inc. priced $800,000 of 0% autocallable buffered notes with step-up premium due Jan. 25, 2027 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, and the according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an annualized call premium of 13% if each index closes at or above its call threshold on any annual observation date starting Jan. 20, 2023. The call threshold is set at 102% of each index’s initial index level and steps up by 2 percentage points each year.
If the notes are not called, meaning the final level of at least one of the indexes is less than 110% of its initial level, the payout will be par, unless any index has finished below its buffer level, 90% of its initial price. If any index has finished below its 90% buffer level, investors will lose 1% for each 1% decline of the least-performing index beyond 10%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable buffered notes with step-up premium
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
|
| Amount: | $800,000
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| Maturity: | Jan. 25, 2027
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| Coupon: | 0%
|
| Price: | Par
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| Payout at maturity: | Par unless any index has finished below buffer level, in which case investors will lose 1% for each 1% decline of least-performing index beyond 10%
|
| Call: | At par plus annualized 13% call premium if each index closes at or above its call threshold level on any annual observation date starting Jan. 20, 2023. The call threshold is set at 102% of each index’s initial index level and steps up by 2 percentage points each year
|
| Initial index levels: | 14,846.46 for Nasdaq, 2,024.037 for Russell and 34,715.39 for Dow
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| Buffer levels: | 13,361.814 for Nasdaq, 1,821.6333 for Russell and 31,243.851 for Dow, 90% of initial levels
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| Pricing date: | Jan. 20
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| Settlement date: | Jan. 25
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40439JXR1
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