Published on 5/31/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $391,000 autocallable contingent income barrier notes linked to indexes
By Angela McDaniels
Tacoma, Wash., May 31 – HSBC USA Inc. priced $391,000 of autocallable contingent income barrier notes due July 13, 2023 linked to the S&P 500 index, the Russell 2000 index and the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 6.63% per year if each index closes at or above its barrier level, 70% of its initial level, on observation date for that quarter.
The notes will be called automatically at par if each index closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par unless the least-performing index finishes below its barrier level, in which case investors will be exposed to the decline of the least-performing index.
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: | S&P 500 index, Russell 2000 index and Dow Jones industrial average
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| Amount: | $391,000
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| Maturity: | July 13, 2023
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| Coupon: | 6.63% per year, payable quarterly if each index closes at or above barrier level on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par unless least-performing index finishes below barrier level, in which case exposure to decline of least-performing index
|
| Call: | Automatically at par if each index closes at or above initial level on any quarterly observation date
|
| Initial levels: | 3,899.38 for S&P, 1,769.365 for Russell, 31,338.15 for Dow
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| Barrier levels: | 2,729.566 for S&P, 1,238.5555 for Russell, 21,936.705 for Dow, or 70% of initial levels
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| Pricing date: | July 8, 2022
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| Settlement date: | July 13, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.875%
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| Cusip: | 40441XDZ0
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