Published on 10/4/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.8 million autocallable barrier notes with step-up premium on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Oct. 4 – HSBC USA Inc. priced $1.8 million of 0% autocallable barrier notes with step-up premium due Oct. 5, 2026 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a 15.55% annualized call premium if each index closes at or above its initial level on any annual observation date.
If the notes are not called, the payout will be par unless any index has finished below its 70% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable barrier notes with step-up premium
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Underlying indexes: | S&P 500 index, Russell 2000 index
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Amount: | $1.8 million
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Maturity: | Oct. 5, 2026
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par unless any index finishes below barrier level, in which case investors will lose 1% for each 1% decline of least-performing index from its initial level
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Call: | At par plus a 15.55% annualized call premium if each index closes at or above its initial level on any annual observation date
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Initial index levels: | 3,585.62 for S&P, 1,664.716 for Russell
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Barrier levels: | 2,509.934 for S&P, 1,165.3012 for Russell; 70% of initial levels
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Pricing date: | Sept. 30
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Settlement date: | Oct. 5
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Agent: | HSBC Securities (USA) Inc.
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Fees: | None
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Cusip: | 40441XPQ7
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