Published on 5/17/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $5 million autocallable barrier notes with step-up premium on S&P, Russell
By William Gullotti
Buffalo, N.Y., May 17 – HSBC USA Inc. priced $5 million of 0% autocallable barrier notes with step-up premium due May 18, 2027 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a 12% annualized call premium if each index closes at or above its initial level on any quarterly observation date after one year.
If the notes are not called, the payout will be par unless any index has finished below its 65% 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, Russell 2000 index
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Amount: | $5 million
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Maturity: | May 18, 2027
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par unless any index finishes 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 12% annualized call premium if each index closes at or above its initial level on any quarterly observation date after one year
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Initial index levels: | 4,023.89 for S&P, 1,792.666 for Russell
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Barrier levels: | 2,615.5285 for S&P, 1,165.2329 for Russell; 65% of initial levels
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Pricing date: | May 13
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Settlement date: | May 18
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2%
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Cusip: | 40439J3Y9
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