Published on 3/20/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $514,000 callable contingent income barrier notes on S&P, Biotech ETF
Chicago, March 20 – HSBC USA Inc. priced $514,000 of callable contingent income barrier notes due May 27, 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.
Every six months, the notes will pay a contingent coupon at an annual rate of 14.3% 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 on any semiannual call observation date.
The payout at maturity will be par plus the final coupon unless any underlier finishes below its 70% barrier level, in which case 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 assets: | S&P 500 index, SPDR S&P Biotech ETF
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| Amount: | $514,000
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| Maturity: | May 27, 2025
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| Coupon: | 14.3% annual rate, payable semiannually if each underlier closes at or above trigger level on determination date for that period
|
| 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-performing underlier from its initial level
|
| Call option: | At par on any semiannual call observation date
|
| Initial level: | 3,901.36 for S&P, $70.33 for ETF
|
| Trigger/barrier levels: | 2,730.952 for S&P, $49.231 for ETF; 70% of initial levels
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| Pricing date: | May 20, 2022
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| Settlement date: | May 25, 2022
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| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
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| Cusip: | 40439J2D6
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