Published on 1/9/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $6.31 million trigger autocallable contingent yield notes on S&P
By William Gullotti
Buffalo, N.Y., Jan. 9 – HSBC USA Inc. priced $6.31 million of trigger autocallable contingent yield notes due Nov. 23, 2027 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will bear interest at a 10.7% annual rate, paid quarterly if the index closes at or above its 70% coupon barrier on the relevant observation date.
The notes will be called at par of $10 plus the coupon if the index closes at or above its initial level on any quarterly observation date after six months.
The payout at maturity will be par plus the final coupon unless the index finishes below the downside threshold level, 70% of its initial level, in which case investors will lose 1% for every 1% loss of the index from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying index: | S&P 500 index
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| Amount: | $6,306,900
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| Maturity: | Nov. 23, 2027
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| Coupon: | 10.7% annual rate, paid quarterly if the index closes at or above its 70% coupon barrier on the relevant observation date
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| Price: | Par of $10
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| Payout at maturity: | Par plus final coupon unless the index finishes below downside threshold, in which case 1% loss for the 1% decline of index from initial level
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| Call: | At par plus the coupon if the index closes at or above initial level on any quarterly observation date after six months
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| Initial index level: | 3,965.34
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| Coupon barrier: | 2,775.74; 70% of initial level
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| Downside threshold: | 2,775.74; 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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| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40441B686
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