Published on 7/1/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.41 million callable contingent income barrier notes on indexes, ETF
By William Gullotti
Buffalo, N.Y., July 1 – HSBC USA Inc. priced $3.41 million of callable contingent income barrier notes due July 1, 2024 linked to the least performing of the Nasdaq-100 index, the Russell 2000 index and the SPDR S&P Regional Banking ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 16.82% if each underlier closes at or above its trigger level, 70% of its initial level, on the observation date for that period.
The notes will be callable at par on any quarterly call observation date.
The payout at maturity will be par plus the final coupon if each underlier finishes at or above its trigger level.
If the worst performer finishes below its trigger level but not below its 60% barrier level, the payout will be par. Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes
|
| Underlying assets: | Nasdaq-100 index, Russell 2000 index, SPDR S&P Regional Banking ETF
|
| Amount: | $3,411,000
|
| Maturity: | July 1, 2024
|
| Coupon: | 16.82%, payable monthly if each underlier closes at or above trigger level on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If each underlier finishes at or above trigger level, par plus final coupon; if worst performer finishes below trigger level but at or above barrier level, par; otherwise, exposure to decline of worst-performing underlier from its initial level
|
| Call option: | At par on any quarterly call observation date
|
| Initial level: | 11,637.77 for Nasdaq, 1,738.841 for Russell, $59.11 for ETF
|
| Trigger levels: | 8,146.439 for Nasdaq, 1,217.1887 for Russell, $41.377 for ETF; 70% of initial levels
|
| Barrier levels: | 6,982.662 for Nasdaq, 1,043.3046 for Russell, $35.466 for ETF; 60% of initial levels
|
| Pricing date: | June 28
|
| Settlement date: | July 1
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.5%
|
| Cusip: | 40441XBM1
|
|
|
© 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.
