Published on 9/15/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.26 million autocallable contingent income barrier notes on S&P, Russell
By Wendy Van Sickle
Columbus, Ohio, Sept. 15 – HSBC USA Inc. priced $1.26 million of autocallable contingent income barrier notes due Sept. 15, 2027 linked to the least performing of 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 monthly coupon at an annual rate of 7% if each index closes at or above its coupon barrier level, 75% 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 monthly coupon observation date after one year.
If the notes are not called and each index finishes at or above its coupon barrier level, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon barrier but at or above its 60% 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, Russell 2000 index
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| Amount: | $1,259,000
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| Maturity: | Sept. 15, 2027
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| Coupon: | 7%, payable monthly 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 coupon barrier, par plus final coupon; if worst performer finishes below coupon barrier but at or above trigger level, par; otherwise, full 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 monthly call observation date after one year
|
| Initial levels: | 4,110.41 for S&P, 1,732.008 for Russell
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| Coupon barrier levels: | 3,082.8075 for S&P, 1,429.5645 for Russell; 75% of initial levels
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| Trigger levels: | 2,466.246 for S&P, 1,143.6516 for Russell; 60% of initial levels
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| Pricing date: | Sept. 12
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| Settlement date: | Sept. 15
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.625%
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| Cusip: | 40441XLT5
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