Published on 6/23/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.68 million callable contingent income barrier notes on S&P, Biotech ETF
By Wendy Van Sickle
Columbus, Ohio, June 23 – HSBC USA Inc. priced $1.68 million of callable contingent income barrier notes due June 23, 2025 linked to the least performing of the S&P 500 index and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Every six months, the notes will pay a contingent coupon at an annual rate of 14.2% if each underlier closes at or above its trigger level, 60% of its initial level, on the observation date for that period.
The notes will be callable at par on any semiannual call observation date.
The payout at maturity will be par plus the final coupon unless any underlier finishes below its 60% barrier level, in which case 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: | Callable contingent income barrier notes
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Underlying assets: | S&P 500 index, SPDR S&P Biotech ETF
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Amount: | $1,682,000
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Maturity: | June 23, 2025
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Coupon: | 14.2%, payable semiannually if each underlier closes at or above trigger level on determination 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; otherwise, exposure to decline of worst-performing underlier from its initial level
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Call option: | At par on any semiannual call observation date
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Initial level: | 3,674.84 for S&P, $67.61 for ETF
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Trigger/barrier levels: | 2,204.904 for S&P, $40.5661 for ETF; 60% of initial levels
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Pricing date: | June 17
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Settlement date: | June 23
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.5%
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Cusip: | 40439J6E0
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