Published on 5/25/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.27 million autocallable contingent income barrier notes on indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, May 25 – HSBC USA Inc. priced $1.27 million of autocallable contingent income barrier notes due May 27, 2025 linked to the least performance of the SPDR S&P Regional Banking 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 monthly coupon at an annualized rate of 9.5% 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 after six months.
If the notes are not called and each underlier finishes at or above its 60% barrier value, the payout at maturity will be par. 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, SPDR S&P Regional Banking ETF
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Amount: | $1,274,000
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Maturity: | May 27, 2025
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Coupon: | 9.5% per year, payable monthly 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 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 after six months
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Initial levels: | 1,773.266 for Russell, 11,835.62 for Nasdaq, $59.98 for ETF
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Coupon triggers: | 1,241.2862 for Russell, 8,284.934 for Nasdaq, $41.986 for ETF; 70% of initial levels
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Barrier levels: | 1,063.9596 for Russell, 7,101.372 for Nasdaq, $35.988 for ETF; 60% of initial levels
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Pricing date: | May 20
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Settlement date: | May 25
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.5%
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Cusip: | 40439J2A2
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