Published on 5/11/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $450,000 10.2% autocallable contingent income barrier notes on indexes
Chicago, May 11 – HSBC USA Inc. priced $450,000 of autocallable contingent income barrier notes due Dec. 21, 2023 linked to the least performing of the Dow Jones industrial average, Russell 2000 index and Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 10.2%, paid quarterly, if each underlying index closes at or above its 70% coupon barrier on the related quarterly observation date.
The securities will be called automatically starting on Sept. 16, 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 65% 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: | Dow Jones industrial average, Russell 2000 index and Nasdaq-100 index
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| Amount: | $450,000
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| Maturity: | Dec. 21, 2023
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| Coupon: | 10.2% annual rate, paid quarterly, if each underlying index closes at or above its 70% coupon barrier on the related quarterly observation date
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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
|
| Call: | Automatically starting on Sept. 16, 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: | 30,668.53 for Dow, 11,593.77 for Nasdaq, 1,731.139 for Russell
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| Coupon barriers: | 21,467.971 for Dow, 8,115.639 for Nasdaq, 1,211.7973 for Russell, 70% of initial levels
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| Barrier levels: | 19,934.5445 for Dow, 7,535.9505 for Nasdaq, 1,125.24035 for Russell, 65% of initial levels
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| Pricing date: | June 15, 2022
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| Settlement date: | June 21, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.875%
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| Cusip: | 40441XAU4
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