By William Gullotti
Buffalo, N.Y., Oct. 12 – HSBC USA Inc. priced $3.75 million Strategic Accelerated Redemption Securities due Oct. 20, 2023 linked to an equally-weighted basket of ETFs, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Financial Select Sector SPDR Fund with a 33.34% weight, the Energy Select Sector SPDR Fund with a 33.33% weight and the Consumer Staples Select Sector SPDR Fund with a 33.33% weight.
The notes will be automatically called at an annualized call premium of 9.45% if the closing level of the basket is greater than or equal to its initial level on any quarterly observation date after six months.
If the notes are not called, investors lose 1% for each 1% decline in the basket.
BofA Securities, Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Strategic Accelerated Redemption Securities
|
| Underlying funds: | Financial Select Sector SPDR Fund (33.34% weight), Energy Select Sector SPDR Fund (33.33% weight), Consumer Staples Select Sector SPDR Fund (33.33% weight)
|
| Amount: | $3,749,840
|
| Maturity: | Oct. 20, 2023
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Full exposure to loss
|
| Call: | At par plus 9.45% annualized if the closing level of the basket is greater than or equal to its initial value on any quarterly observation date after six months
|
| Initial levels: | $31.64 for Financial, $82.44 for Energy, $67.51 for Consumer
|
| Agent: | BofA Securities, Inc.
|
| Pricing date: | Oct. 6
|
| Settlement date: | Oct. 14
|
| Fees: | 1.25%
|
| Cusip: | 40441B504
|
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