Published on 1/24/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $941,000 callable contingent income barrier notes on index, ETF
Chicago, Jan. 24 – HSBC USA Inc. priced $941,000 of callable contingent income barrier notes due April 28, 2025 linked to the least performing of the S&P 500 index and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 12.55% if each underlier closes at or above its trigger level, 70% of its initial level, on the observation date for that period.
The notes will be callable at par plus any coupon otherwise due on any semiannual call observation date.
The payout at maturity will be par plus the final coupon if each underlier finishes at or above its 70% barrier level. Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Callable contingent income barrier notes
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Underlying assets: | S&P 500 index, SPDR S&P Biotech ETF
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Amount: | $941,000
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Maturity: | April 28, 2025
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Coupon: | 12.55% annual rate, payable semiannually if each underlier closes at or above trigger level on determination date for that period
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Price: | Par
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Payout at maturity: | If each underlier finishes at or above barrier level, par plus final coupon; otherwise, exposure to decline of worst performer from its initial level
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Call option: | At par plus any coupon otherwise due on any semiannual call observation date
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Initial level: | 4,271.78 for S&P, $79.84 for ETF
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Trigger levels: | 2,990.246 for S&P, $55.888 for ETF; 70% of initial levels
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Barrier levels: | 2,990.246 for S&P, $55.888 for ETF; 70% of initial levels
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Pricing date: | April 22, 2022
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Settlement date: | April 27, 2022
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.5%
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Cusip: | 40439JS97
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