Published on 6/16/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $500,000 autocallable barrier notes with step-up premium on three indexes
Chicago, June 16 – HSBC USA Inc. priced $500,000 of 0% autocallable barrier notes with step-up premium Dec. 9, 2025 linked to the least performing of the Dow Jones industrial average, the S&P 500 index and the Russell 2000 index, 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 one year. The premium is 11% per year.
If the notes are not called, the payout will be par unless any index finishes below its 70% 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: | Dow Jones industrial average, S&P 500 index, Russell 2000 index
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| Amount: | $500,000
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| Maturity: | Dec. 9, 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 finishes 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 one year; premium is 11% per year
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| Initial index levels: | 4,591.67 for S&P, 35,227.03 for Dow, 2,203.479 for Russell
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| Barrier levels: | 3,214.169 for S&P, 24,658.921 for Dow, 1,542.4353 for Russell; 70% of initial levels
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| Pricing date: | Dec. 6, 2021
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| Settlement date: | Dec. 9, 2021
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.75%
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| Cusip: | 40439JTQ8
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