Published on 1/23/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $632,000 callable contingent income barrier notes on indexes, ETF
Chicago, Jan. 23 – HSBC USA Inc. priced $632,000 of callable contingent income barrier notes due Jan. 29, 2024 linked to the least performing of the Russell 2000 index, the Nasdaq-100 index and the VanEck Vectors Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 16.57% 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.
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 plus any coupon due. 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, VanEck Vectors Gold Miners ETF
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| Amount: | $632,000
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| Maturity: | Jan. 29, 2024
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| Coupon: | 16.57%, payable quarterly if each underlier closes at or above trigger level on determination date for that period
|
| 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
|
| Call option: | At par plus any coupon otherwise due on any quarterly call observation date
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| Initial level: | 1,940.665 for Russell, 13,356.87 for Nasdaq, $36.94 for ETF
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| Trigger levels: | 1,358.4655 for Russell, 9,349.809 for Nasdaq, $25.858 for ETF; 70% of initial levels
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| Barrier levels: | 1,164.399 for Russell, 8,014.122 for Nasdaq, $22.164 for ETF; 60% of initial levels
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| Pricing date: | April 22, 2022
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| Settlement date: | April 27, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.875%
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| Cusip: | 40439JY33
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