Published on 3/4/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.52 million contingent income callables on Russell, S&P, Stoxx
By William Gullotti
Buffalo, N.Y., March 4 – HSBC USA Inc. priced $2.52 million of contingent income callable securities due March 4, 2024 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 6.25% if each index closes at or above its coupon barrier level, 55% of its initial index level, on the corresponding observation date.
HSBC may call the notes at par plus any coupon due on any quarterly determination date.
If each index finishes at or above its 55% downside threshold level, the payout at maturity will be par plus the final contingent coupon. If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income callable securities
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| Underlying indexes: | Euro Stoxx 50, Russell 2000, S&P 500
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| Amount: | $2,515,000
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| Maturity: | March 4, 2024
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| Coupon: | 6.25% per year, payable quarterly if each index closes at or above coupon barrier on the relevant observation date
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold level, par plus final coupon; if final level of any index is less than downside threshold level, full exposure to decline of lowest-performing index
|
| Call option: | At par plus any coupon due on any quarterly determination date
|
| Initial levels: | 3,924.23 for Stoxx, 4,373.94 for S&P, 2,048.089 for Russell
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| Coupon barriers: | 2,158.3265 for Stoxx, 2,405.667 for S&P, 1,126.44895 for Russell; 55% of initial levels
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| Downside threshold: | 2,158.3265 for Stoxx, 2,405.667 for S&P, 1,126.44895 for Russell; 55% of initial levels
|
| Pricing date: | Feb. 28
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| Settlement date: | March 3
|
| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 2%
|
| Cusip: | 40439JC29
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