Published on 1/20/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $5.81 million trigger autocallable contingent yield notes on Russell, Stoxx
By William Gullotti
Buffalo, N.Y., Jan. 20 – HSBC USA Inc. priced $5.81 million of trigger autocallable contingent yield notes due Jan. 21, 2028 linked to the performance of the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will bear interest at 8.25% per year, paid quarterly if each 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 each 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 if each index finishes at or above its coupon barrier.
If the laggard index finishes below its coupon barrier but at or above the downside threshold level, 60% of its initial level, the payout will be par. Otherwise, investors will lose 1% for every 1% decline of the laggard index from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying indexes: | Russell 2000 index, Euro Stoxx 50 index
|
| Amount: | $5,814,000
|
| Maturity: | Jan. 21, 2028
|
| Coupon: | 8.25% annual rate, paid quarterly if each index closes at or above its 70% coupon barrier on the relevant observation date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus final coupon if each index finishes at or above coupon barrier; if laggard index finishes below coupon barrier at or above downside threshold, par; otherwise, 1% loss for the 1% decline of laggard index from initial level
|
| Call: | At par plus the coupon if each index closes at or above initial level on any quarterly observation date after six months
|
| Initial index levels: | 1,884.286 for Russell, 4,174.33 for Stoxx
|
| Coupon barriers: | 1,319.0 for Russell, 2,922.03 for Stoxx; 70% of initial levels
|
| Downside thresholds: | 1,130.572 for Russell, 2,504.6 for Stoxx; 60% of initial levels
|
| Pricing date: | Jan. 17
|
| Settlement date: | Jan. 20
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40441B371
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
