Published on 4/18/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $306,000 callable contingent income barrier notes on Dow, Nasdaq, Russell
By William Gullotti
Buffalo, N.Y., April 18 – HSBC USA Inc. priced $306,000 of callable contingent income barrier notes due April 21, 2025 linked to the least performing of the Dow Jones industrial average, 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 9.2% if each index closes at or above its trigger level, 75% 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 the final coupon if each index finishes at or above its trigger level.
If the worst performer finishes below its trigger level but at or above its 60% barrier level, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the lowest performing index 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: | Nasdaq-100 index, Russell 2000 index, Dow Jones industrial average
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| Amount: | $306,000
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| Maturity: | April 21, 2025
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| Coupon: | 9.2%, payable quarterly if each index closes at or above trigger 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 final coupon; if the worst performer finishes below trigger level but at or above barrier level, par; otherwise, exposure to decline of worst-performing index
|
| Call option: | At par on any quarterly call observation date
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| Initial level: | 13,940.24 for Nasdaq, 1,986.937 for Russell, 34,220.36 for Dow
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| Trigger levels: | 10,455.18 for Nasdaq, 1,490.20275 for Russell, 25,665.27 for Dow; 75% of initial levels
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| Barrier levels: | 8,364.144 for Nasdaq, 1,192.1622 for Russell, 20,532.216 for Dow; 60% of initial levels
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| Pricing date: | April 12
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| Settlement date: | April 18
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40439JW84
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