By Wendy Van Sickle
Columbus, Ohio, July 9 – HSBC USA Inc. priced $2.36 million autocallable contingent income barrier notes due July 8, 2024 linked to the least performing of the Financial Select Sector SPDR fund and the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 12.25% if each fund closes at or above its trigger level, 80% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each fund closes at or above its initial level on any coupon observation date after six months.
The payout at maturity will be par plus the final coupon unless any fund closes below 80% of its initial level, in which case investors will lose 1% for each 1% decline in the least performing fund.
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 funds: | Financial Select Sector SPDR fund and Financial Select Sector SPDR fund
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| Amount: | $2.36 million
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| Maturity: | July 8, 2024
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| Coupon: | 12.25%, payable quarterly if each fund closes at or above coupon barrier level on determination date for that period
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| Price: | Par
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| Payout at maturity: | Par plus the coupon unless any fund closes below trigger level, in which case full exposure to the losses of the least performing fund
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| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after six months
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| Initial level: | $53.87 for Energy and $36.69 for Financial ETF
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| Coupon barriers: | $43.096 for Energy and $29.352 for Financial ETF, 80% of initial levels
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| Trigger levels: | $43.096 for Energy and $29.352 for Financial ETF, 80% of initial levels
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| Pricing date: | June 30
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| Settlement date: | July 6
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40439JDS1
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