Published on 4/16/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.59 million contingent income barrier autocalls with memory on two indexes
By Kiku Steinfeld
Chicago, April 18 – HSBC USA Inc. priced $1.59 million of autocallable contingent income barrier notes with memory coupon due March 30, 2023 linked to the performance of the Nasdaq-100 index and the Russell 2000 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 5.8% if each index closes at or above its coupon trigger level, 80% of its initial level, on the observation date for that period. Previously unpaid coupons, if any, will be automatically included whenever coupon payments are made.
The notes will be called at par if each index closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and each index finishes at or above its 80% barrier value, the payout at maturity will be par. Otherwise, investors will be fully exposed to the 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: | Autocallable contingent income barrier notes with memory coupon
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index
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| Amount: | $1,587,000
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| Maturity: | March 30, 2023
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| Coupon: | 5.8% per year, payable quarterly if each index closes at or above coupon trigger on observation date for that period; coupon payments will automatically include any previously unpaid coupons
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above barrier level, par; otherwise, full exposure to decline of least-performing index from its initial level
|
| Call: | At par if each index closes at or above initial level on any quarterly call observation date after six months
|
| Initial levels: | 15,204.83 for Nasdaq, 2,281.003 for Russell
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| Coupon triggers: | 12,163.864 for Nasdaq, 1,824.8024 for Russell; 80% of initial levels
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| Barrier levels: | 12,163.864 for Nasdaq, 1,824.8024 for Russell; 80% of initial levels
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| Pricing date: | Sept. 27, 2021
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| Settlement date: | Sept. 30, 2021
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.525%
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| Cusip: | 40439JLG8
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