Published on 7/13/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.2 million autocallable barrier notes with step-up premium on three indexes
By Kiku Steinfeld
Chicago, July 13 – HSBC USA Inc. priced $1.2 million of 0% autocallable barrier notes with step-up premium due Dec. 30, 2025 linked to the worst performing of the S&P 500 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 11.5% per year.
If the notes are not called, the payout will be par unless any index has finished 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: | S&P 500 index, Russell 2000 index, Dow Jones industrial average
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| Amount: | $1.2 million
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| Maturity: | Dec. 30, 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 11.5% per year
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| Initial index levels: | 4,791.19 for S&P, 2,261.459 for Russell, 36,302.38 for Dow
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| Barrier levels: | 3,353.833 for S&P, 1,583.0213 for Russell, 25,411.666 for Dow; 70% of initial levels
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| Pricing date: | Dec. 27, 2021
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| Settlement date: | Dec. 30, 2021
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.65%
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| Cusip: | 40439JVS1
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