Published on 6/27/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.21 million autocallable contingent income barrier notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, June 27 – HSBC USA Inc. priced $1.21 million of autocallable contingent income barrier notes due June 24, 2027 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 pay a contingent quarterly coupon at an annual rate of 7.15% if each index closes at or above its coupon barrier level, 70% 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 after one year.
The payout at maturity will be par plus the final coupon, if any, unless any index finishes below its 65% 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: | Dow Jones industrial average, S&P 500 index, Russell 2000 index
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| Amount: | $1,213,000
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| Maturity: | June 24, 2027
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| Coupon: | 7.15%, payable quarterly if each index closes at or above coupon barrier on determination date for that period
|
| Price: | Par
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| 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 one year
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| Initial levels: | 30,530.25 for Dow, 1,694.031 for Russell, 3,764.79 for S&P
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| Barrier levels: | 21,371.175 for Dow, 1,185.8217 for Russell, 2,635.353 for S&P; 70% of initial levels
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| Trigger levels: | 19,844.6625 for Dow, 1,101.12015 for Russell, 2,447.1135 for S&P; 65% of initial levels
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| Pricing date: | June 21
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| Settlement date: | June 24
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.625%
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| Cusip: | 40441XBH2
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