Published on 12/20/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $23,000 autocallable contingent income barrier notes on three indexes
By Kiku Steinfeld
Chicago, Dec. 20 – HSBC USA Inc. priced $23,000 of autocallable contingent income barrier notes due April 29, 2025 linked to the least performing of the Dow Jones industrial average, the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7.85% 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 quarterly coupon observation date starting May 1, 2023.
The payout at maturity will be par plus the final coupon, if any, unless any index finishes below its 75% trigger level, in which case 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: | Dow Jones industrial average, Nasdaq-100 index, Russell 2000 index
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| Amount: | $23,000
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| Maturity: | April 29, 2025
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| Coupon: | 7.85%, payable quarterly 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 trigger level, par plus any coupon; otherwise, exposure to decline of worst-performing index from its initial level
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| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date starting May 1, 2023
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| Initial levels: | 33,240.18 for Dow, 1,890.475 for Russell, 13,009.71 for Nasdaq
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| Barrier levels: | 24,930.135 for Dow, 1,417.85625 for Russell, 9,757.2825 for Nasdaq; 75% of initial levels
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| Trigger levels: | 24,930.135 for Dow, 1,417.85625 for Russell, 9,757.2825 for Nasdaq; 75% of initial levels
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| Pricing date: | April 26
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| Settlement date: | April 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.775%
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| Cusip: | 40439JR23
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