Published on 5/26/2022 in the Prospect News Structured Products Daily.
Correction: HSBC announces upsized $1.18 million autocallable step-up barrier notes
By William Gullotti
Buffalo, N.Y., May 26 – HSBC USA Inc. priced $1.18 million of 0% autocallable barrier notes with step-up premium due May 27, 2025 linked to the lesser performing of the Nasdaq-100 index, the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The company had previously announced a smaller $1,076,000 issue size, as reported by Prospect News.
The notes will be called at par plus a 15% annual call premium if each index closes at or above its initial level on any semiannual observation date.
If the notes are not called, the payout will be par unless any index has finished below its 70% 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: | Nasdaq-100 index, Dow Jones industrial average, Russell 2000 index
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Amount: | $1,176,000
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Maturity: | May 27, 2025
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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 15% annual call premium if each index closes at or above its initial level on any semiannual observation date
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Initial index levels: | 11,835.62 for Nasdaq, 31,261.9 for Dow, 1,773.266 for Russell
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Barrier levels: | 8,284.934 for Nasdaq, 21,883.33 for Dow, 1,241.2862 for Russell; 70% 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: | 40439J5E1
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