Published on 5/26/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.37 million callable contingent income barrier notes on index, ETF
By William Gullotti
Buffalo, N.Y., May 26 – HSBC USA Inc. priced $3.37 million of callable contingent income barrier notes due May 26, 2026 linked to the least performing of the S&P 500 index and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 11.4% if each underlier closes at or above its trigger level, 60% 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 semiannual 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 trigger level but at or above 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: | S&P 500 index, SPDR S&P Biotech ETF
|
| Amount: | $3,368,000
|
| Maturity: | May 26, 2026
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| Coupon: | 11.4%, payable semiannually 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 performer from its initial level
|
| Call option: | At par plus any coupon otherwise due on any semiannual call observation date
|
| Initial level: | 4,191.98 for S&P, $85.37 for ETF
|
| Trigger levels: | 2,515.188 for S&P, $51.222 for ETF; 60% of initial levels
|
| Barrier levels: | 2,515.188 for S&P, $51.222 for ETF; 60% of initial levels
|
| Pricing date: | May 19
|
| Settlement date: | May 24
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40447AAH7
|
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