Published on 6/3/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.23 million autocallable contingent income barrier notes on indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, June 3 – HSBC USA Inc. priced $1.23 million of autocallable contingent income barrier notes due Sept. 5, 2023 linked to the least performance of the VanEck Vectors Gold Miners ETF, the Russell 2000 index and Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 21% if each underlier closes at or above its coupon trigger level, 65% of its initial level, on every day that period.
The notes will be called at par plus the coupon if each underlier closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and each underlier finishes at or above its 65% barrier value, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the worst performer 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 assets: | Russell 2000 index, Nasdaq-100 index, VanEck Vectors Gold Miners ETF
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| Amount: | $1,233,000
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| Maturity: | Sept. 5, 2023
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| Coupon: | 21% per year, payable monthly if each underlier closes at or above coupon trigger on every day that period
|
| Price: | Par
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| Payout at maturity: | If each underlier finishes at or above barrier level, par plus coupon; otherwise, full exposure to decline of worst performer from initial level
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| Call: | At par plus coupon if each underlier closes at or above initial level on any quarterly call observation date after six months
|
| Initial levels: | 1,864.043 for Russell, 112,642.1 for Nasdaq, $31.73 for ETF
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| Coupon triggers: | 1,211.62795 for Russell, 8,217.365 for Nasdaq, $20.6245 for ETF; 65% of initial levels
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| Barrier levels: | 1,211.62795 for Russell, 8,217.365 for Nasdaq, $20.6245 for ETF; 65% of initial levels
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| Pricing date: | May 31
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| Settlement date: | June 3
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.75%
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| Cusip: | 40439J6J9
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