Published on 5/1/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $430,000 contingent income callable yield notes on Russell, S&P
Chicago, May 1 – HSBC USA Inc. priced $430,000 of contingent income issuer callable yield notes due June 13, 2024 linked to the worst performing of the Russell 2000 index and S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 8.3%, paid quarterly, if each underlying index closes at or above its 65% coupon barrier on the related observation date.
The securities may be called at par on any quarterly call determination date.
If the worst performing index gains or ends above its 65% threshold value the payout at maturity will be par plus the contingent coupon. Investors will lose 1% for every 1% that the worst performing index declines if it finishes below its threshold value.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is the structurer.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income issuer callable yield notes
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| Underlying indexes: | Russell 2000 index and S&P 500 index
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| Amount: | $430,000
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| Maturity: | June 13, 2024
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| Coupon: | 8.3% annual rate, paid quarterly, if each underlying index closes at or above its 65% coupon barrier on the related observation date
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| Price: | Par
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| Payout at maturity: | If worst performing index finishes at or above its 65% threshold value, par; 1% loss for every 1% that worst performing index declines if it finishes below its threshold value
|
| Call: | At par on any quarterly call determination date
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| Initial levels: | 1,800.284 for Russell, 3,900.86 for S&P
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| Coupon barriers: | 1,170.1846 for Russell, 2,535.559 for S&P; 65% of initial levels
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| Downside thresholds: | 1,170.1846 for Russell, 2,535.559 for S&P; 65% of initial levels
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| Pricing date: | June 10, 2022
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| Settlement date: | June 15, 2022
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| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management as structurer
|
| Fees: | 2%
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| Cusip: | 40441XAH3
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