Published on 3/27/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1 million autocallable barrier notes with step-up premium on S&P, Nasdaq
By Kiku Steinfeld
Chicago, March 28 – HSBC USA Inc. priced $1 million of 0% autocallable barrier notes with step-up premium due Sept. 29, 2025 linked to the least performing of the S&P 500 index and the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if each index closes at or above its initial level on any annual observation date. The premium is 9.85% per year.
If the notes are not called, meaning the final level of at least one of the indexes is less than its initial level, the payout will be par unless any index has finished below its 75% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable barrier notes with step-up premium
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Underlying indexes: | S&P 500 index, Nasdaq-100 index
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Amount: | $1 million
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Maturity: | Sept. 29, 2025
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par unless any index has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing index from its initial level
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Call: | At par plus a call premium if each index closes at or above its initial level on any annual observation date; premium is 9.85% per year
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Initial levels: | 15,176.51 for Nasdaq and 4,395.64 for S&P
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Barrier levels: | 11,382.3825 for Nasdaq and 3,296.73 for S&P; 75% of initial levels
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Pricing date: | Sept. 22
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Settlement date: | Sept. 27
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0%
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Cusip: | 40439JMQ5
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