Published on 4/26/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $72,000 8.5% contingent income barrier autocalls with memory on indexes
Chicago, April 26 – HSBC USA Inc. priced $72,000 of autocallable contingent income barrier notes with memory coupon due Nov. 30, 2023 linked to the least performing of the S&P 500 index and Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 8.5%, paid quarterly, if each underlying index closes at or above its 80% barrier level on the related quarterly observation date, plus any previously unpaid coupons.
The securities will be called automatically starting on Nov. 25, 2022 at par if the level of the worst performing index is greater than or equal to its initial level and on any subsequent quarterly observation date.
The payout at maturity will be par if the worst performing index ends at or above its 80% barrier value. Otherwise, investors will lose 1% for every 1% that the worst performing index declines.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes with memory coupon
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| Underlying indexes: | S&P 500 index and Russell 2000 index
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| Amount: | $72,000
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| Maturity: | Nov. 30, 2023
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| Coupon: | 8.5% annual rate, paid quarterly, if each underlying index closes at or above its 80% barrier level on the related quarterly observation date, plus any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | If worst performing index finishes at or above the barrier level par; 1% loss for every 1% that worst performing index declines if it ends below barrier value
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| Call: | Automatically starting on Nov. 25, 2022 at par if the level of the worst performing index is greater than or equal to its initial level and on any subsequent quarterly observation date
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| Initial levels: | 1,799.164 for Russell, 3,978.73 for S&P
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| Coupon barriers: | 1,439.3312 for Russell, 3,182.984 for S&P, 80% of initial levels
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| Barrier levels: | 1,439.3312 for Russell, 3,182.984 for S&P, 80% of initial levels
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| Pricing date: | May 25, 2022
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| Settlement date: | May 31, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.525%
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| Cusip: | 40439J2V6
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