Published on 2/27/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $495,000 callable contingent income barrier notes on three indexes
Chicago, Feb. 27 – HSBC USA Inc. priced $495,000 of callable contingent income barrier notes due May 12, 2025 linked to the least performing of the S&P 500 index, the Nasdaq-100 index and the Russell 2000 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 9.15% if each index closes at or above its coupon trigger level, 70% of its initial level, on the observation date for that period.
The notes will be callable at par on any quarterly call observation date after one year.
The payout at maturity will be par plus the final coupon if each index 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.
|
| Issue: | Callable contingent income barrier notes
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| Underlying indexes: | S&P 500 index, Nasdaq-100 index, Russell 2000 index
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| Amount: | $495,000
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| Maturity: | May 12, 2025
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| Coupon: | 9.15%, payable quarterly if each index closes at or above trigger level on determination date for that period
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above trigger level, par plus final coupon; otherwise, full exposure to decline of worst-performing index from initial level
|
| Call option: | At par on any quarterly call observation date after one year
|
| Initial levels: | 4,146.87 for S&P, 12,850.55 for Nasdaq, 1,871.148 for Russell
|
| Coupon trigger levels: | 2,902.809 for S&P, 8,995.385 for Nasdaq, 1,309.8036 for Russell; 70% of initial levels
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| Barrier levels: | 2,902.809 for S&P, 8,995.385 for Nasdaq, 1,309.8036 for Russell; 70% of initial levels
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| Pricing date: | May 5, 2022
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| Settlement date: | May 10, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40439JZ73
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