Published on 7/19/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $12.72 million autocallable market-linked step-up notes on S&P 500
By William Gullotti
Buffalo, N.Y., July 19 – HSBC USA Inc. priced $12.72 million of 0% autocallable market-linked step-up notes due July 28, 2028 linked to the S&P 500 index, according to a 424B2 with the Securities and Exchange Commission.
The notes will be called at par plus an annual call premium of 9.75% if the index closes at or above its initial level on any annual call date.
If the index finishes above the step-up value, 135% of the initial level, the payout at maturity will be par of $10 plus the index gain.
If the index finishes flat or gains by up to the step-up level, the payout will be par plus the step-up payment of 35%.
Investors will receive par if the index declines up to 15% and lose 1% for every 1% decline of the index beyond 15%.
BofA Securities, Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable market-linked step-up notes
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Underlying index: | S&P 500 index
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Amount: | $12,718,890
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Maturity: | July 28, 2028
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | If the index finishes above the step-up level, par plus the index gain; if the index finishes flat or gains up to the step-up level, par plus 35%; if the index declines up to 15%, par; otherwise, 1% loss for every 1% decline below 15%
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Call: | At par plus 9.75% per year if the index closes at or above its initial level on any annual observation date
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Initial level: | 3,790.38
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Step-up value: | 5,117.01; 135% of initial level
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Threshold level: | 3,221.82; 85% of initial level
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Pricing date: | July 14
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Settlement date: | July 21
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Underwriter: | BofA Securities, Inc.
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Fees: | 2%
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Cusip: | 40439N650
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