Published on 8/9/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $4.05 million contingent income callable yield notes on S&P, Russell, Nasdaq
By Wendy Van Sickle
Columbus, Ohio, Aug. 9 – HSBC USA Inc. priced $4.05 million of contingent income issuer callable yield notes due Aug. 8, 2024 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the S&P 500 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 11.6% if each index closes at or above its coupon barrier, 70% of its initial level, on the observation date for that period.
The notes will be callable at par plus any contingent coupon on any quarterly observation date.
The payout at maturity will be par unless any index finishes below its 70% threshold level, in which case investors will be fully exposed to the losses of the worst performing index.
HSBC Securities (USA) Inc. is the selling agent with Morgan Stanley Wealth Management as a distributor.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income issuer callable yield notes
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| Underlying indexes: | Russell 2000 index, S&P 500 index, Nasdaq-100 index
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| Amount: | $4,045,000
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| Maturity: | Aug. 8, 2024
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| Coupon: | 11.6% annual rate, payable quarterly if each index closes at or above coupon barrier on observation date for that period
|
| Price: | Par
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| Payout at maturity: | If each index finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline of worst performing index
|
| Call option: | At par on any quarterly observation date
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| Initial levels: | 13,207.69 for Nasdaq, 1,921.824 for Russell, 4,145.19 for S&P
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| Coupon barriers: | 9,245.383 for Nasdaq, 1,345.2768 for Russell, 2,901.633 for S&P, 70% of initial levels
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| Downside thresholds: | 9,245.383 for Nasdaq, 1,345.2768 for Russell, 2,901.633 for S&P, 70% of initial levels
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| Pricing date: | Aug. 5
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| Settlement date: | Aug. 10
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| Selling agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management as a distributor
|
| Fees: | 2%
|
| Cusip: | 40441XHC7
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