Published on 7/6/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.19 million callable contingent income barrier notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, July 6 – HSBC USA Inc. priced $3.19 million of callable contingent income barrier notes due July 7, 2025 linked to the least performing of the Dow Jones industrial average, the Nasdaq-100 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 8.25% if each index closes at or above its coupon trigger level, 60% of its initial level, on the observation date for that period.
The notes will be callable at par on any monthly call observation date after one year.
The payout at maturity will be par plus the final coupon if each index finishes at or above its coupon trigger level.
If the worst performer finishes below its coupon trigger level but at or above its 50% barrier level, the payout 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: | Callable contingent income barrier notes
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| Underlying indexes: | Dow Jones industrial average, Nasdaq-100 index, S&P 500 index
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| Amount: | $3,188,000
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| Maturity: | July 7, 2025
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| Coupon: | 8.25%, payable monthly if each index closes at or above coupon trigger level on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above coupon trigger level, par plus final coupon; if worst performer finishes below coupon trigger level but at or above barrier level, par; otherwise, full exposure to decline of worst-performing index from initial level
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| Call option: | At par on any monthly call observation date after one year
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| Initial levels: | 30,775.43 for Dow, 11,503.72 for Nasdaq, 3,785.38 for S&P
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| Coupon trigger levels: | 18,465.258 for Dow, 6,902.232 for Nasdaq, 2,271.228 for S&P; 60% of initial levels
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| Barrier levels: | 15,387.715 for Dow, 5,751.86 for Nasdaq, 1,892.69 for S&P; 50% of initial levels
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| Pricing date: | June 30
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| Settlement date: | July 6
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40441XBU3
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