Chicago, Aug. 22 – HSBC USA Inc. priced $5.08 million of trigger autocallable contingent yield notes due Dec. 23, 2026 linked to the least performing of the SPDR S&P 500 ETF and the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 7.3% per year if each fund closes at or above its coupon barrier, 70% of its initial level, on the related observation date.
The notes will be automatically called at par plus the coupon if each fund closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and the final level of each fund is greater than or equal to the downside threshold level, 60% of the initial level, the payout at maturity will be par plus any final coupon.
Otherwise, investors will lose 1% for every 1% that the final level of the least performing fund is less than its initial level.
HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying funds: | SPDR S&P 500 ETF, Energy Select Sector SPDR Fund
|
| Amount: | $5,080,000
|
| Maturity: | Dec. 23, 2026
|
| Coupon: | 7.3% per year, paid quarterly, if each fund closes at or above its coupon barrier on any related observation date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus any final coupon unless any fund finishes below downside threshold level, in which case 1% loss for each 1% decline of laggard fund from initial level
|
| Call: | Automatically at par plus coupon if each fund closes at or above initial level on any quarterly call observation date after six months
|
| Initial levels: | $463.06 for S&P, $54.52 for Energy
|
| Coupon barrier levels: | $324.142 for S&P, $38.164 for Energy; 70% of initial levels
|
| Downside thresholds: | $277.836 for S&P, $32.712 for Energy; 60% of initial levels
|
| Pricing date: | Dec. 22, 2021
|
| Settlement date: | Dec. 28, 2021
|
| Agents: | HSBC Securities (USA) Inc. and UBS Financial Services Inc.
|
| Fees: | 2.25%
|
| Cusip: | 40390L768
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
