Published on 4/26/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.18 million autocallable contingent income barrier notes on indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, April 26 – HSBC USA Inc. priced $1.18 million of autocallable contingent income barrier notes due Jan. 29, 2024 linked to the least performance of the VanEck Vectors Gold Miners ETF, the Russell 2000 index and Nasdaq-100 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 19% if each underlier closes at or above its coupon trigger level, 70% 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.
If the notes are not called and each underlier finishes at or above its 60% barrier value, the payout at maturity will be par plus any final coupon. 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: | Russell 2000 index, Nasdaq-100 index, VanEck Vectors Gold Miners ETF
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Amount: | $1,170,000
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Maturity: | Jan. 29, 2024
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Coupon: | 19% 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 barrier level, par plus any final coupon; 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
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Initial levels: | $36.94 for ETF, 1,940.665 for Russell, 13,356.87 for Nasdaq
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Coupon triggers: | $25.858 for ETF, 1,358.4655 for Russell, 9,349.809 for Nasdaq; 70% of initial levels
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Barrier levels: | $22.164 for ETF, 1,164.399 for Russell, 8,014.122 for Nasdaq; 60% of initial levels
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Pricing date: | April 22
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Settlement date: | April 27
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.375%
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Cusip: | 40439JY41
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