By Marisa Wong
Morgantown, W.Va., Aug. 30 – HSBC USA Inc. priced $15.55 million of 0% Strategic Accelerated Redemption Securities due Aug. 25, 2022 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index closes at or above its initial level on any annual observation date, the notes will be automatically called at par plus an annualized call premium of 13.5%.
If the notes are not called and the index finishes at or above 95% of its initial level, the payout at maturity will be par. Otherwise, investors will be exposed to any index decline beyond 5%.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Strategic Accelerated Redemption Securities
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| Underlying index: | Euro Stoxx 50
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| Amount: | $15,550,250
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| Maturity: | Aug. 25, 2022
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | Par unless index falls by more than 5%, in which case 1% loss for every 1% decline beyond 5%
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| Call: | Automatically at par plus an annualized call premium of 13.5% if the index closes at or above its initial level on any annual observation date
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| Initial level: | 3,444.73
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| Pricing date: | Aug. 24
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| Settlement date: | Aug. 31
|
| Agent: | BofA Merrill Lynch
|
| Fees: | 2%
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| Cusip: | 40435G584
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