Published on 6/15/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.16 million callable contingent income barrier notes on indexes, ETF
By Wendy Van Sickle
Columbus, Ohio, June 15 – HSBC USA Inc. priced $2.16 million of callable contingent income barrier notes due Sept. 15, 2023 linked to the Nasdaq-100 index, the Russell 2000 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 monthly coupon at an annualized rate of 20.25% if each underlying closes at or above the coupon trigger level, 65% of the initial level, on the observation date for that month.
The notes will be callable at par plus any coupon due on any quarterly call observation date after six months.
If the notes are not called and each underlying finishes at or above its initial level or no underlying has ever closed below the 65% barrier level, the payout at maturity will be par. Otherwise, investors will lose 1% for each 1% decline of the least-performing underlying from its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable contingent income barrier notes
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| Underlying assets: | Nasdaq-100 index, Russell 2000 index and VanEck Vectors Gold Miners ETF
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| Amount: | $2,155,000
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| Maturity: | Sept. 15, 2023
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| Coupon: | 20.25%, payable monthly if each underlying closes at or above coupon trigger level on observation date for that month
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| Price: | Par
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| Payout at maturity: | If each underlying finishes at or above initial level or no underlying ever closes below barrier level, par; otherwise, 1% loss for each 1% decline of the least-performing underlying from initial level
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| Call option: | At par plus any coupon on any quarterly call observation date after six months
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| Initial levels: | 11,832.82 for Nasdaq, 1,800.284 for Russell, $32.57 for ETF
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| Coupon trigger: | 7,691.333 for Nasdaq, 1,170.1846 for Russell, $21.170 for ETF; 65% of initial prices
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| Barrier levels: | 7,691.333 for Nasdaq, 1,170.1846 for Russell, $21.170 for ETF; 65% of initial prices
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| Pricing date: | June 10
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| Settlement date: | June 15
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 0.55%
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| Cusip: | 40441XAS9
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