Published on 9/27/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $900,000 autocallable contingent income barrier notes on index, ETFs
Chicago, Sept. 27 – HSBC USA Inc. priced $900,000 of autocallable contingent income barrier notes due Feb. 8, 2024 linked to the least performance of the SPDR S&P Regional Banking ETF, the Financial Select Sector SPDR fund and S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 12.1% if each underlier closes at or above its coupon trigger level, 75% of its initial level, on the observation date for that period.
The notes will be called at par plus the coupon if each underlier closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and each underlier finishes at or above its coupon trigger level, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon trigger but at or above its 75% barrier value, the payout at maturity 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.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying assets: | SPDR S&P Regional Banking ETF, the Financial Select Sector SPDR fund and S&P 500 index
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| Amount: | $900,000
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| Maturity: | Feb. 8, 2024
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| Coupon: | 12.1% per year, payable quarterly if each underlier closes at or above coupon trigger on observation date for that period
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| Price: | Par
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| Payout at maturity: | If each underlier finishes at or above coupon trigger level, par plus final coupon; if the worst performer finishes below coupon trigger but not below barrier level, par; otherwise, full exposure to decline of worst performer from initial level
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| Call: | At par plus coupon if each underlier closes at or above initial level on any quarterly call observation date after six months
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| Initial levels: | 4,500.53 for S&P, $40.10 for financial, $73.45 for banking
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| Coupon triggers: | 3,375.3975 for S&P, $30.075 for financial, $55.0875 for banking; 75% of initial levels
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| Barrier levels: | 3,375.3975 for S&P, $30.075 for financial, $55.0875 for banking; 75% of initial levels
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| Pricing date: | Feb. 4
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| Settlement date: | Feb. 9
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40439JZU2
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