By William Gullotti
Buffalo, N.Y., Jan. 9 – HSBC USA Inc. priced $5.11 million of contingent income callable securities due Nov. 21, 2024 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 9.8% if the index closes at or above its coupon barrier level, 70% of its initial index level, on the relevant observation date.
HSBC may call the notes at par plus any coupon due on any quarterly determination date.
If the index finishes at or above its 70% downside threshold level, the payout at maturity will be par plus the final coupon.
If the final level of the index is less than its downside threshold level, investors will be fully exposed to the decline of the index.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income callable securities
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| Underlying index: | S&P 500 index
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| Amount: | $5,108,000
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| Maturity: | Nov. 21, 2024
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| Coupon: | 9.8% per year, payable quarterly if the index closes at or above coupon barrier on the relevant observation date
|
| Price: | Par
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| Payout at maturity: | If the index finishes at or above downside threshold level, par plus final coupon; if final level of the index is less than downside threshold level, full exposure to decline of the index
|
| Call option: | At par plus any coupon due on any quarterly determination date
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| Initial level: | 3,965.34
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| Coupon barrier: | 2,775.738; 70% of initial level
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| Downside threshold: | 2,775.738; 70% of initial level
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| Pricing date: | Nov. 18, 2022
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| Settlement date: | Nov. 23, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 2%
|
| Cusip: | 40441XVC1
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