Published on 5/18/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $530,000 autocallable barrier notes with step-up premium on three indexes
Chicago, May 18 – HSBC USA Inc. priced $530,000 of 0% autocallable barrier notes with step-up premium due Oct. 29, 2025 linked to the worst performing of the Nasdaq-100 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if each index closes at or above its initial level on any quarterly observation date after a year. The premium is 7.3% per year.
If the notes are not called, the payout will be par unless any index has finished below its 60% barrier level, in which case investors will lose 1% for each 1% decline of the least-performing index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with step-up premium
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| Underlying indexes: | Nasdaq-100 index, Russell 2000 index, Dow Jones industrial average
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| Amount: | $530,000
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| Maturity: | Oct. 29, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If not called, par unless any index has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing index from its initial level
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| Call: | At par plus a call premium if each index closes at or above its initial level on any quarterly observation date after a year; premium is 7.3% per year
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| Initial index levels: | 15,598.39 for Nasdaq, 2,252.491 for Russell, 35,490.69 for Dow
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| Barrier levels: | 9,359.034 for Nasdaq, 1,351.4946 for Russell, 21,294.414 for Dow; 60% of initial levels
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| Pricing date: | Oct. 27, 2021
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| Settlement date: | Oct. 29, 2021
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.25%
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| Cusip: | 40439JPX7
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