Published on 10/18/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $1.46 million callable contingent income barrier notes on indexes, ETF
By William Gullotti
Buffalo, N.Y., Oct. 18 – HSBC USA Inc. priced $1.46 million of callable contingent income barrier notes due Sept. 23, 2024 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the SPDR S&P Regional Banking ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 13.41% if each underlier closes at or above its trigger level, 70% of its initial level, on the observation date for that period.
The notes will be callable at par plus any coupon otherwise due on any quarterly call observation date after six months.
The payout at maturity will be par plus the final coupon if each underlier finishes at or above its trigger level.
If the worst performer finishes below trigger level but at or above its 60% barrier level, the payout will be par. Otherwise, investors will be fully exposed to the decline of the worst performer from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable contingent income barrier notes
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| Underlying assets: | Russell 2000 index, Nasdaq-100 index, SPDR S&P Regional Banking ETF
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| Amount: | $1.46 million
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| Maturity: | Sept. 23, 2024
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| Coupon: | 13.41%, payable monthly if each underlier closes at or above trigger level on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each underlier finishes at or above trigger level, par plus final coupon; if worst performer finishes below trigger level but at or above barrier level, par; otherwise, exposure to decline of worst performer from its initial level
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| Call option: | At par plus any coupon otherwise due on any quarterly call observation date after six months
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| Initial level: | 1,798.189 for Russell, 11,861.38 for Nasdaq, $62.95 for ETF
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| Trigger levels: | 1,258.7323 for Russell, 8,302.966 for Nasdaq, $44.065 for ETF; 70% of initial levels
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| Barrier levels: | 1,078.9134 for Russell, 7,116.828 for Nasdaq, $37.77 for ETF; 60% of initial levels
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| Pricing date: | Sept. 16
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| Settlement date: | Sept. 21
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40441XLP3
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