Published on 6/14/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.15 million callable contingent income barrier notes on Russell, EM ETF
By Kiku Steinfeld
Chicago, June 14 – HSBC USA Inc. priced $1.15 million of callable contingent income barrier notes due Nov. 25, 2024 linked to the least performing of the Russell 2000 index and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Every six months, the notes will pay a contingent coupon at an annual rate of 8.25% if each underlier closes at or above its trigger level, 70% of its initial level, on the observation date for that period.
The notes will be callable at par on any semiannual call observation date.
The payout at maturity will be par plus the final coupon unless any underlier finishes below its 70% barrier level, in which case investors will be fully exposed to the decline of the worst performer 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 assets: | Russell 2000 index, iShares MSCI Emerging Markets ETF
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| Amount: | $1.15 million
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| Maturity: | Nov. 25, 2024
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| Coupon: | 8.25%, payable semiannually if each underlier closes at or above trigger level on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each underlier finishes at or above barrier level, par; otherwise, exposure to decline of worst-performing underlier from its initial level
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| Call option: | At par on any semiannual call observation date
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| Initial level: | 2,343.161 for index, $50.92 for ETF
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| Trigger/barrier levels: | 1,640.2127 for index, $35.644 for ETF; 70% of initial levels
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| Pricing date: | Nov. 19, 2021
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| Settlement date: | Nov. 24, 2021
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40439JRQ0
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