Published on 9/7/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.5 million autocallable contingent income barrier notes on three indexes
By Wendy Van Sickle
Columbus, Ohio, Sept. 7 – HSBC USA Inc. priced $1.5 million of autocallable contingent income barrier notes due Sept. 9, 2024 linked to the least performing of the S&P 500 index, the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 10.4% if each index closes at or above its coupon barrier level, 65% 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 call observation date after one year.
The payout at maturity will be par plus the final coupon if each index finishes at or above coupon barrier.
If the worst performer finishes below its coupon barrier but at or above its 65% trigger level, the payout will be par. Otherwise, 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.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying indexes: | S&P 500 index, Dow Jones industrial average, Russell 2000 index
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| Amount: | $1,501,000
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| Maturity: | Sept. 9, 2024
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| Coupon: | 10.4%, payable monthly if each index closes at or above coupon barrier on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par plus final coupon; if worst performer finishes below barrier level but not below trigger level, par; otherwise, exposure to decline of worst-performing index from its initial level
|
| Call: | At par plus coupon if each index closes at or above initial level on any quarterly call observation date after one year
|
| Initial levels: | 3,966.85 for S&P, 1,822.818 for Russell, 31,656.42 for Dow
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| Barrier levels: | 2,578.4525 for S&P, 1,184.8317 for Russell, 20,576.673 for Dow; 65% of initial levels
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| Trigger levels: | 2,578.4525 for S&P, 1,184.8317 for Russell, 20,576.673 for Dow; 65% of initial levels
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| Pricing date: | Sept. 1
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| Settlement date: | Sept. 7
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40441XMP2
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