Published on 5/1/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $355,000 callable contingent income barrier notes on three indexes
Chicago, May 1 – HSBC USA Inc. priced $355,000 of callable contingent income barrier notes due March 9, 2027 linked to the least performing of the S&P 500 index, the Dow Jones industrial average 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 6.5% if each index closes at or above its coupon barrier level, 70% of its initial level, on the observation date for that period.
The notes will be callable at par on any quarterly call observation date starting after one year.
The payout at maturity will be par plus any final coupon if each index finishes at or above its 65% barrier level. 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 indexes: | S&P 500 index, Dow Jones industrial average, Russell 2000 index
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| Amount: | $355,000
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| Maturity: | March 9, 2027
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| Coupon: | 6.5% annual rate, payable quarterly if each index closes at or above coupon barrier level 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 final coupon; otherwise, full exposure to decline of worst-performing index from initial level
|
| Call option: | At par on any quarterly call observation date after one year
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| Initial levels: | 4,121.43 for S&P, 32,915.78 for Dow, 1,889.885 for Russell
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| Coupon trigger levels: | 2,885.001 for S&P, 23,041.046 for Dow, 1,322.9195 for Russell; 70% of initial levels
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| Barrier levels: | 2,678.9295 for S&P, 21,395.257 for Dow, 1,228.42525 for Russell; 65% of initial levels
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| Pricing date: | June 6, 2022
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| Settlement date: | June 9, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.25%
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| Cusip: | 40439J6D2
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