Published on 7/21/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.22 million autocallable contingent income barrier notes on three indexes
By William Gullotti
Buffalo, N.Y., July 21 – HSBC USA Inc. priced $1.22 million of autocallable contingent income barrier notes due July 23, 2024 linked to the least performing of the S&P 500 index, the Nasdaq-100 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.85% if each index closes at or above its coupon barrier level, 65% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly coupon observation date after six months.
The payout at maturity will be par plus the final coupon, if any, unless any index finishes below its 65% trigger level, in which case investors will be fully exposed to the decline of the lowest performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable contingent income barrier notes
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Underlying indexes: | S&P 500 index, Nasdaq-100 index, Euro Stoxx 50 index
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Amount: | $1,215,000
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Maturity: | July 23, 2024
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Coupon: | 9.85%, payable quarterly if each index closes at or above coupon barrier 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 trigger level, par plus any coupon; otherwise, exposure to decline of worst-performing index from its initial level
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Call: | 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: | 3,830.85 for S&P, 3,511.86 for Stoxx, 11,877.5 for Nasdaq
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Barrier levels: | 2,490.0525 for S&P, 2,282.709 for Stoxx, 7,720.375 for Nasdaq; 65% of initial levels
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Trigger levels: | 2,490.0525 for S&P, 2,282.709 for Stoxx, 7,720.375 for Nasdaq; 65% of initial levels
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Pricing date: | July 18
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Settlement date: | July 21
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.75%
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Cusip: | 40441XET3
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