Published on 4/24/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $387,000 callable contingent income barrier notes on three indexes
Chicago, April 24 – HSBC USA Inc. priced $387,000 of callable contingent income barrier notes due Nov. 27, 2024 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 9.88% if each index closes at or above its coupon barrier 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.
The payout at maturity will be par plus any final coupon if each index finishes at or above its 60% 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 indexes: | S&P 500 index, Nasdaq-100 index, Russell 2000 index
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| Amount: | $387,000
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| Maturity: | Nov. 27, 2024
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| Coupon: | 9.88% annual rate, payable quarterly if each index closes at or above coupon barrier level on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above trigger level, par plus any final coupon; otherwise, full exposure to decline of worst-performing index from initial level
|
| Call option: | At par on any quarterly call observation date
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| Initial levels: | 3,941.48 for S&P, 11,769.84 for Nasdaq, 1,764.826 for Russell
|
| Coupon trigger levels: | 2,759.036 for S&P, 8,238.888 for Nasdaq, 1,235.3782 for Russell; 70% of initial levels
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| Barrier levels: | 2,364.888 for S&P, 7,061.904 for Nasdaq, 1,058.8956 for Russell; 60% of initial levels
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| Pricing date: | May 24, 2022
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| Settlement date: | May 27, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40439J5U5
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