Published on 4/27/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $754,000 autocallable contingent income barrier notes on indexes, ETF
Chicago, April 27 – HSBC USA Inc. priced $754,000 of autocallable contingent income barrier notes due June 2, 2025 linked to the least performing of the Russell 2000 index, Nasdaq-100 index and SPDR S&P Regional Banking ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 10.75%, paid monthly, if each underlying index closes at or above its 70% coupon barrier on the related monthly observation date.
The securities will be called automatically starting on Aug. 30, 2022 at par and on any subsequent quarterly observation date.
The payout at maturity will be par if the worst performing index ends at or above its 50% 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
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| Underlying indexes: | Russell 2000 index, Nasdaq-100 index and SPDR S&P Regional Banking ETF
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| Amount: | $754,000
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| Maturity: | June 2, 2025
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| Coupon: | 10.75% annual rate, paid monthly, if each underlying index closes at or above its 70% coupon barrier on the related monthly observation date
|
| Price: | Par
|
| 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
|
| Call: | Automatically starting on Aug. 30, 2022 at par and on any subsequent quarterly observation date
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| Initial levels: | 12,276.79 for Nasdaq, 1,838.238 for Russell, $63.31 for ETF
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| Coupon barriers: | 8,593.753 for Nasdaq, 1,286.7666 for Russell, $44.317 for ETF, 70% of initial levels
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| Barrier levels: | 6,138.395 for Nasdaq, 919.119 for Russell, $31.655 for ETF, 50% of initial levels
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| Pricing date: | May 26, 2022
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| Settlement date: | June 1, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40439J4U6
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