Published on 12/8/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $3.49 million contingent income autocalls on S&P, Russell, Nasdaq
By William Gullotti
Buffalo, N.Y., Dec. 8 – HSBC USA Inc. priced $3.49 million of contingent income callable securities due Dec. 5, 2024 linked to the worst performing of the Nasdaq-100 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 10.6% if each index closes at or above its coupon barrier level, 65% of its initial level, on every trading day during the observation period.
The notes will be automatically called at par plus any coupon otherwise due if each index closes at or above initial levels on any quarterly determination date after six months.
If each index finishes at or above its 65% downside threshold level, the payout at maturity will be par plus any final contingent coupon otherwise due.
If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the worst performer from its initial level.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.
Issuer: | HSBC USA Inc.
|
Issue: | Contingent income callable securities
|
Underlying indexes: | Nasdaq-100 index, Russell 2000 index, S&P 500 index
|
Amount: | $3,485,000
|
Maturity: | Dec. 5, 2024
|
Coupon: | 10.6% per year, payable quarterly if each index closes at or above coupon barrier on every trading day during the observation period
|
Price: | Par
|
Payout at maturity: | If each index finishes at or above downside threshold level, par plus any final contingent coupon otherwise due; if final level of any index is less than downside threshold level, full exposure to decline of the worst performer from its initial level
|
Call option: | Automatically at par plus any coupon otherwise due on any quarterly determination date if each index closes at or above initial levels on the relevant observation date after six months
|
Initial levels: | 11,994.26 for Nasdaq, 4,071.7 for S&P, 1,892.839 for Russell
|
Coupon barriers: | 7,796.269 for Nasdaq, 2,646.605 for S&P, 1,230.34535 for Russell; 65% of initial levels
|
Downside threshold: | 7,796.269 for Nasdaq, 2,646.605 for S&P, 1,230.34535 for Russell; 65% of initial levels
|
Pricing date: | Dec. 2
|
Settlement date: | Dec. 7
|
Agent: | HSBC Securities (USA) Inc.
|
Distribution: | Morgan Stanley Wealth Management
|
Fees: | 2.25%
|
Cusip: | 40441XVX5
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.