Published on 9/23/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.65 million autocallable contingent income barrier notes on S&P, Dow
By Wendy Van Sickle
Columbus, Ohio, Sept. 23 – HSBC USA Inc. priced $1.65 million of autocallable contingent income barrier notes due March 25, 2024 linked to the least performing of the S&P 500 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.5% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly coupon observation date after six months.
If the notes are not called and each index finishes at or above its coupon barrier level, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon barrier but at or above its 70% trigger level, the payout will be par. Otherwise, investors will be fully exposed to the decline of the lowest performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | S&P 500 index, Dow Jones industrial average
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| Amount: | $1,651,000
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| Maturity: | March 25, 2024
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| Coupon: | 8.5%, payable quarterly if each index closes at or above coupon barrier on determination date for that period
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above coupon barrier, par plus final coupon; if worst performer finishes below coupon barrier but at or above trigger level, par; otherwise, full exposure to decline of worst-performing index from its initial level
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after six months
|
| Initial levels: | 3,855.93 for S&P, 30,706.23 for Dow
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| Coupon barrier levels: | 2,699.151 for S&P, 21,494.361 for Dow; 70% of initial levels
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| Trigger levels: | 2,699.151 for S&P, 21,494.361 for Dow; 70% of initial levels
|
| Pricing date: | Sept. 20
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| Settlement date: | Sept. 23
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.375%
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| Cusip: | 40441XLQ1
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