Published on 3/10/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $25.92 million contingent income callables on three indexes
By Wendy Van Sickle
Columbus, Ohio, March 10 – HSBC USA Inc. priced $25.92 million of contingent income callable securities due Sept. 9, 2024 linked to the worst performing of the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at an annual rate of 12.45% if each index closes at or above its coupon barrier level, 75% of its initial index level, on each day during that quarter.
HSBC may call the notes at par plus any coupon on any quarterly determination date.
If each index finishes at or above its 65% downside threshold level, the payout at maturity will be par. If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income callable securities
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| Underlying indexes: | Nasdaq-100, Russell 2000, S&P 500
|
| Amount: | $25,918,000
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| Maturity: | Sept. 9, 2024
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| Coupon: | 12.45% per year, payable quarterly if each index closes at or above coupon barrier on each day during that quarter
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par; if final level of any index is less than downside threshold level, full exposure to decline of lowest-performing index
|
| Call option: | At par plus any coupon on any quarterly determination date
|
| Initial levels: | 13,837.83 for Nasdaq, 4,328.87 for S&P, 2,000.9 for Russell
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| Coupon barriers: | 10,378.3725 for Nasdaq, 3,246.6525 for S&P, 1,500.657 for Russell; 75% of initial levels
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| Downside threshold: | 8,994.5895 for Nasdaq, 2,813.7655 for S&P, 1,300.585 for Russell; 65% of initial levels
|
| Pricing date: | March 4
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| Settlement date: | March 9
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 2.5%
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| Cusip: | 40439JD44
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