Published on 4/18/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.2 million autocallable contingent income barrier notes on three indexes
By William Gullotti
Buffalo, N.Y., April 18 – HSBC USA Inc. priced $1.2 million of autocallable contingent income barrier notes due April 19, 2023 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 monthly coupon at an annual rate of 6% if each index closes at or above its coupon barrier level, 75% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly coupon observation date.
The payout at maturity will be par plus the final coupon if each index finishes at or above its coupon barrier.
If the worst performer finishes below its coupon barrier but not below its 70% trigger 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: | Autocallable contingent income barrier notes
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| Underlying indexes: | Dow Jones industrial average, Nasdaq-100 index, Russell 2000 index
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| Amount: | $1,199,000
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| Maturity: | April 19, 2023
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| Coupon: | 6%, payable monthly if each index closes at or above coupon barrier 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 barrier level, par plus coupon; if laggard index finishes below barrier level but at or above trigger level, par; otherwise, exposure to decline of worst-performing index from its initial level
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date
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| Initial levels: | 34,564.59 for Dow, 2,025.102 for Russell, 14,217.29 for Nasdaq
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| Barrier levels: | 25,923.4425 for Dow, 1,518.8265 for Russell, 10,662.9675 for Nasdaq; 75% of initial levels
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| Trigger levels: | 24,195.213 for Dow, 1,417.5714 for Russell, 9,952.103 for Nasdaq; 70% of initial levels
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| Pricing date: | April 13
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| Settlement date: | April 19
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.875%
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| Cusip: | 40439JL94
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