Published on 9/27/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.65 million callable contingent income barrier notes on Nasdaq, ETF
By William Gullotti
Buffalo, N.Y., Sept. 27 – HSBC USA Inc. priced $3.65 million of callable contingent income barrier notes due Sept. 29, 2025 linked to the least performing of the Nasdaq-100 index and the Financial Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
Every six months, the notes will pay a contingent coupon at an annual rate of 13.75% 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 semiannual call observation date.
The payout at maturity will be par plus the final coupon unless any underlier finishes below its 70% barrier level, in which case 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: | Nasdaq-100 index, Financial Select Sector SPDR Fund
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| Amount: | $3.65 million
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| Maturity: | Sept. 29, 2025
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| Coupon: | 13.75%, payable semiannually 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 barrier level, par; otherwise, exposure to decline of worst-performing underlier from its initial level
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| Call option: | At par on any semiannual call observation date
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| Initial level: | 11,311.24 for Nasdaq, $31.05 for ETF
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| Trigger/barrier levels: | 7,917.868 for Nasdaq, $21.735 for ETF; 70% of initial levels
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| Pricing date: | Sept. 23
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| Settlement date: | Sept. 28
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40441XMK3
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