Published on 6/7/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $232,000 autocallable contingent income barrier notes on S&P, Russell
Chicago, June 7 – HSBC USA Inc. priced $232,000 of autocallable contingent income barrier notes due May 26, 2023 linked to the least performing of the S&P 500 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 5.7% if each index closes at or above its coupon barrier level, 80% of its initial level, on the observation date for that period. Previously unpaid coupons will also be paid.
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 after six months.
The payout at maturity will be par plus the final coupon, if any, unless any index finishes below its 80% trigger level, in which case 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.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | S&P 500 index and Russell 2000 index
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| Amount: | $232,000
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| Maturity: | May 26, 2023
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| Coupon: | 5.7%, payable quarterly if each index closes at or above coupon barrier on determination date for that period; previously unpaid coupons will also be paid
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above trigger level, par plus any coupon; 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 after six months
|
| Initial levels: | 4,682.94 for S&P, 2,331.348 for Russell
|
| Barrier levels: | 3,746.352 for S&P, 1,865.0784 for Russell; 80% of initial levels
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| Trigger levels: | 3,746.352 for S&P, 1,865.0784 for Russell; 80% of initial levels
|
| Pricing date: | Nov. 22, 2021
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| Settlement date: | Nov. 26, 2021
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| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.525%
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| Cusip: | 40439JRD9
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