Published on 6/29/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1.87 million trigger autocallable contingent yield notes on Dow, Russell
By William Gullotti
Buffalo, N.Y., June 29 – HSBC USA Inc. priced $1.87 million of trigger autocallable contingent yield notes due June 29, 2027 linked to the least performing of the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 10.15% per year if each index closes at or above its coupon barrier, 70% of its initial level, on the related observation date.
The notes will be automatically called at par plus coupon if each index closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and the final level of each index is greater than or equal to the downside threshold level, 70% of the initial level, the payout at maturity will be par plus the final coupon.
Otherwise, investors will lose 1% for every 1% that the final level of the least performing index is less than its initial level.
HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Trigger autocallable contingent yield notes
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Underlying indexes: | Dow Jones industrial average, Russell 2000 index
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Amount: | $1,871,750
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Maturity: | June 29, 2027
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Coupon: | 10.15% per year, paid quarterly, if each index closes at or above its coupon barrier on any related observation date
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Price: | Par of $10
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Payout at maturity: | Par plus final coupon unless any index finishes below downside threshold level, in which case 1% loss for each 1% decline of laggard index from initial level
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Call: | Automatically at par plus coupon if each index closes at or above initial level on any quarterly call observation date after six months
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Initial levels: | 31,500.68 for Dow, 1,765.737 for Russell
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Coupon barrier levels: | 22,050.48 for Dow, 1,236.016 for Russell; 70% of initial levels
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Downside thresholds: | 22,050.48 for Dow, 1,236.016 for Russell; 70% of initial levels
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Pricing date: | June 24
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Settlement date: | June 29
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Agents: | HSBC Securities (USA) Inc. and UBS Financial Services Inc.
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Fees: | None
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Cusip: | 40390L214
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