Published on 9/22/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $17.05 million step-down trigger autocallables on Russell 2000, S&P 500
By Wendy Van Sickle
Columbus, Ohio, Sept. 22 – HSBC USA Inc. priced $17.05 million of 0% step-down trigger autocallable notes due Sept. 24, 2025 linked to the lesser performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par of $10 plus 9.55% per year if each index closes at or above its call threshold level on any quarterly observation date after one year. For each index, the call threshold level will be equal to the initial index level until the final observation date when it will be 65% of the initial level.
If the notes are not called, then the final level of at least one index will be less than its 65% downside threshold level, and investors will be exposed to the decline of the lesser-performing index from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the underwriters.
| Issuer: | HSBC USA Inc.
|
| Issue: | Step-down trigger autocallable notes
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| Underlying indexes: | Russell 2000 and S&P 500
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| Amount: | $17,053,000
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| Maturity: | Sept. 24, 2025
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | Full exposure to decline of lesser-performing index from initial level if either index finishes below downside threshold level
|
| Call: | Automatically at par plus 9.55% per year if each index closes at or above call threshold level on any quarterly observation date after one year; call threshold equals initial index level until final observation dates when it equals downside threshold
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| Initial levels: | 1,812.843 for Russell, 3,899.89 for S&P
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| Downside thresholds: | 1,178.348 for Russell, 2,534.929 for S&P; 65% of initial levels
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| Pricing date: | Sept. 19
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| Settlement date: | Sept. 22
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| Underwriters: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
| Cusip: | 40441B405
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