Published on 1/24/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.9 million callable contingent income barrier notes on Nasdaq, SPDR ETF
By William Gullotti
Buffalo, N.Y., Jan. 24 – HSBC USA Inc. priced $1.9 million of callable contingent income barrier notes due Jan. 26, 2026 linked to the performance of the Nasdaq-100 index and the Financial Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual 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 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 70% barrier level.
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
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| Underlying assets: | Nasdaq-100 index, Financial Select Sector SPDR Fund
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| Amount: | $1,902,000
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| Maturity: | Jan. 26, 2026
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| Coupon: | 13.75%, 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 barrier level, par plus final coupon; 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: | 11,619.03 for Nasdaq, $35.35 for ETF
|
| Trigger levels: | 8,133.321 for Nasdaq, $24.745 for ETF; 70% of initial levels
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| Barrier levels: | 8,133.321 for Nasdaq, $24.745 for ETF; 70% of initial levels
|
| Pricing date: | Jan. 20
|
| Settlement date: | Jan. 25
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40441XZY9
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