Published on 3/30/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $6.14 million trigger autocallable contingent yield notes on Nasdaq, S&P
By Wendy Van Sickle
Columbus, Ohio, March 30 – HSBC USA Inc. priced $6.14 million of trigger autocallable contingent yield notes due March 31, 2027 linked to the Nasdaq-100 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly at an annual rate of 9.2% if both indexes close at or above the 70% coupon barrier on the related observation date.
The notes will be called at par of $10 plus a coupon if each index closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par plus a final coupon unless any index finishes below the downside threshold level, 70% of its initial level, in which case investors will lose 1% for every 1% loss of the worst performer from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Trigger autocallable contingent yield notes
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Underlying indexes: | S&P 500 index, Nasdaq-100 index
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Amount: | $6,138,350
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Maturity: | March 31, 2027
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Coupon: | 9.2% annualized, payable quarterly if indexes close at or above coupon barrier on observation date
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Price: | Par of $10
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Payout at maturity: | Par plus a final coupon unless any index finishes below downside threshold, in which case 1% loss for each 1% decline of worst performer from initial level
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Call: | At par plus a coupon if each index closes at or above initial levels on any quarterly observation date after six months
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Initial index levels: | 14,754.31 for Nasdaq, 4,543.06 for S&P
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Coupon barriers: | 10,328.02 for Nasdaq, 3,180.14 for S&P; 70% of initial levels
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Downside thresholds: | 10,328.02 for Nasdaq, 3,180.14 for S&P; 70% of initial levels
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Pricing date: | March 25
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Settlement date: | March 30
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Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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Fees: | 0%
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Cusip: | 40390L636
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