Published on 10/5/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.25 million contingent income callables on Russell, S&P, Stoxx
By William Gullotti
Buffalo, N.Y., Oct. 5 – HSBC USA Inc. priced $2.25 million of contingent income callable securities due Oct. 3, 2024 linked to the worst performing of the Euro Stoxx 50 index, the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 14.45% if each index closes at or above its coupon barrier level, 75% of its initial index level, on each day during the observation period.
HSBC may call the notes at par plus any coupon due on any quarterly determination date.
If each index finishes at or above its 75% downside threshold level, the payout at maturity will be par plus any final contingent coupon due. If the final level of any index is less than its downside threshold level, investors will be fully exposed to the decline of the least-performing index.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income callable securities
|
| Underlying indexes: | Euro Stoxx 50, Russell 2000, S&P 500
|
| Amount: | $2,245,000
|
| Maturity: | Oct. 3, 2024
|
| Coupon: | 14.45% per year, payable quarterly if each index closes at or above coupon barrier on every trading day during the observation period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above downside threshold level, par plus any final coupon due; if final level of any index is less than downside threshold level, full exposure to decline of lowest-performing index
|
| Call option: | At par plus any coupon due on any quarterly determination date
|
| Initial levels: | 3,318.2 for Stoxx, 3,585.62 for S&P, 1,664.716 for Russell
|
| Coupon barriers: | 2,488.65 for Stoxx, 2,689.215 for S&P, 1,248.537 for Russell; 75% of initial levels
|
| Downside threshold: | 2,488.65 for Stoxx, 2,689.215 for S&P, 1,248.537 for Russell; 75% of initial levels
|
| Pricing date: | Sept. 30
|
| Settlement date: | Oct. 5
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 2.5%
|
| Cusip: | 40441XPS3
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
