Published on 10/25/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $521,000 callable contingent income barrier notes on three stocks
Chicago, Oct. 25 – HSBC USA Inc. priced $521,000 of callable contingent income barrier notes due March 3, 2025 linked to the performance of Intel Corp., Microsoft Corp. and International Business Machines Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 16.55% if each stock closes at or above its coupon trigger level, 65% of its initial level, on the observation date for that period.
The notes will be callable at par plus any coupon due on any quarterly call observation date after six months.
The payout at maturity will be par plus the final coupon, if any, if each stock finishes at or above its 65% trigger level. Otherwise, investors will be fully exposed to the decline of the lowest performing stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes
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| Underlying stocks: | Intel Corp., Microsoft Corp. and International Business Machines Corp.
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| Amount: | $521,000
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| Maturity: | March 3, 2025
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| Coupon: | 16.55%, payable quarterly if each stock closes at or above coupon trigger level on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above trigger level, par plus any final coupon; otherwise, exposure to decline of worst-performing stock from its initial level
|
| Call option: | At par plus any coupon due on any quarterly call observation date after six months
|
| Initial level: | $294.59 for Microsoft, $46.72 for Intel, $121.97 for IBM
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| Coupon trigger levels: | $191.4835 for Microsoft, $30.368 for Intel, $79.2805 for IBM; 65% of initial levels
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| Trigger levels: | $191.4835 for Microsoft, $30.368 for Intel, $79.2805 for IBM; 65% of initial levels
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| Pricing date: | Feb. 24
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| Settlement date: | March 1
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.35%
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| Cusip: | 40439JD36
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