Published on 2/24/2022 in the Prospect News Structured Products Daily.
New Issue: HSBC sells $3.19 million callable contingent income barrier notes on S&P, Biotech ETF
By William Gullotti
Buffalo, N.Y., Feb. 24 – HSBC USA Inc. priced $3.19 million of callable contingent income barrier notes due April 29, 2024 linked to the least performing of the S&P 500 index and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Every six months, the notes will pay a contingent coupon at an annual rate of 11.2% if each asset 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 the coupon on any semiannual call observation date.
The payout at maturity will be par plus the final coupon unless any asset finishes below its 70% barrier level, in which case investors will be fully exposed to the decline of the lowest performing asset.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes
|
| Underlying assets: | S&P 500 index and SPDR S&P Biotech ETF
|
| Amount: | $3,193,000
|
| Maturity: | April 29, 2024
|
| Coupon: | 11.2%, payable semiannually if each asset closes at or above trigger level on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If each asset finishes at or above barrier level, par plus coupon; otherwise, exposure to decline of worst-performing asset
|
| Call option: | At par plus coupon on any semiannual call observation date
|
| Initial level: | 4,180.17 for S&P, $134.30 for ETF
|
| Trigger/barrier levels: | 2,926.119 for S&P, $94.01 for ETF; 70% of initial levels
|
| Pricing date: | April 23, 2021
|
| Settlement date: | April 28, 2021
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40438C5P2
|
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