Published on 5/22/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $15,000 9% autocallable contingent income barrier notes on indexes
Chicago, May 22 – HSBC USA Inc. priced $15,000 of autocallable contingent income barrier notes due June 30, 2025 linked to the least performing of the Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 9%, paid quarterly, if each underlying index closes at or above its 75% barrier level on the related quarterly observation date.
The securities will be called automatically starting on June 27, 2023 at par if the level of the worst performing index is greater than or equal to its initial level and on any subsequent quarterly observation date.
The payout at maturity will be par if the worst performing index ends at or above its 75% barrier value. Otherwise, investors will lose 1% for every 1% that the worst performing index declines.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable contingent income barrier notes
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Underlying indexes: | Nasdaq-100 index, Russell 2000 index and Dow Jones industrial average
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Amount: | $15,000
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Maturity: | June 30, 2025
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Coupon: | 9% annual rate, paid quarterly, if each underlying index closes at or above its 75% barrier level on the related quarterly observation date
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Price: | Par
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Payout at maturity: | If worst performing index finishes at or above the barrier level par; 1% loss for every 1% that worst performing index declines if it ends below barrier value
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Call: | Automatically starting on June 27, 2023 at par if the level of the worst performing index is greater than or equal to its initial level and on any subsequent quarterly observation date
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Initial levels: | 31,438.26 for Dow, 12,008.24 for Nasdaq, 1,771.742 for Russell
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Coupon barriers: | 23,578.695 for Dow, 9,006.18 for Nasdaq, 1,328.8065 for Russell, 75% of initial levels
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Barrier levels: | 23,578.695 for Dow, 9,006.18 for Nasdaq, 1,328.8065 for Russell, 75% of initial levels
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Pricing date: | June 27, 2022
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Settlement date: | June 30, 2022
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.775%
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Cusip: | 40439J7A7
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