Published on 5/1/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $574,000 callable contingent income barrier notes on indexes, ETF
Chicago, May 1 – HSBC USA Inc. priced $574,000 of callable contingent income barrier notes due June 13, 2025 linked to the least performing of the Dow Jones industrial average, the Nasdaq-100 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 quarterly coupon at an annual rate of 11.92% 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 plus any coupon otherwise due on any quarterly call observation date starting after six months.
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 trigger level but at or above its 65% barrier level, the payout will be par plus any coupon due. 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.
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| Issue: | Callable contingent income barrier notes
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| Underlying assets: | Dow Jones industrial average, Nasdaq-100 index, SPDR S&P Regional Banking ETF
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| Amount: | $574,000
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| Maturity: | June 13, 2025
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| Coupon: | 11.92% annual rate, payable quarterly if each underlier closes at or above trigger level on determination date for that period
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| Price: | Par
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| 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 performer from its initial level
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| Call option: | At par plus any coupon otherwise due on any quarterly call observation date starting after six months
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| Initial level: | 31,392.79 for Dow, 11,832.82 for Nasdaq, $59.75 for ETF
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| Trigger levels: | 21,974.953 for Dow, 8,282.974 for Nasdaq, $41.825 for ETF; 70% of initial levels
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| Barrier levels: | 20,405.3135 for Dow, 7,691.333 for Nasdaq, $38.8375 for ETF; 65% of initial levels
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| Pricing date: | June 10, 2022
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| Settlement date: | June 15, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.75%
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| Cusip: | 40441XAT7
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