Published on 9/8/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $366,000 callable contingent income barrier notes tied to Dow, Russell, Nasdaq
By Angela McDaniels
Tacoma, Wash., Sept. 8 – HSBC USA Inc. priced $366,000 of callable contingent income barrier notes due Sept. 8, 2025 linked to the Dow Jones industrial average, the Russell 2000 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 10.8% per year if each index closes at or above its coupon trigger level, 70% of its initial level, on the observation date for that month.
Beginning March 8, 2023, the notes are callable at par quarterly.
The payout at maturity will be par plus the final coupon, if any, unless the worst performing index finishes below its barrier level, 60% of its initial level, in which case investors will lose 1% for every 1% that the worst performing index declines from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable 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: | $366,000
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| Maturity: | Sept. 8, 2025
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| Coupon: | 10.8% per year, payable monthly if each index closes at or above coupon trigger level on observation date for that month
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| Price: | Par
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| Payout at maturity: | Par plus final coupon, if any, unless worst performing index finishes below barrier level, in which case 1% loss for every 1% that worst performing index declines from initial level
|
| Call: | Beginning March 8, 2023, callable at par quarterly
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| Initial levels: | 31,318.44 for Dow, 1,809.748 for Russell and 12,098.44 for Nasdaq
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| Coupon trigger levels: | 21,922.908 for Dow, 1,266.8236 for Russell and 8,468.908 for Nasdaq, or 70% of initial levels
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| Barrier levels: | 18,791.064 for Dow, 1,085.8488 for Russell and 7,259.064 for Nasdaq, or 60% of initial levels
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| Pricing date: | Sept. 2, 2022
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| Settlement date: | Sept. 8, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40441XLV0
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