By Wendy Van Sickle
Columbus, Ohio, Jan. 17 – HSBC USA Inc. priced $6.24 million autocallable Strategic Accelerated Redemption Securities due Jan. 24, 2025 linked to a weighted basket of ETFs, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the Energy Select Sector SPDR fund with a 33.34% weight), the Financial Select Sector SPDR fund with a 33.33% weight and the Industrial Select Sector SPDR fund with a 33.33% weight.
The notes will be automatically called at an annualized call premium of 10.76% if the closing level of the basket is greater than or equal to its initial level on any quarterly valuation date, including maturity.
If the notes are not called, investors will lose 1% for each 1% decline in the basket.
BofA Securities, Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable Strategic Accelerated Redemption Securities
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| Underlying indexes: | Energy Select Sector SPDR fund (33.34% weight), Financial Select Sector SPDR fund (33.33% weight) and Industrial Select Sector SPDR fund (33.33% weight)
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| Amount: | $6,237,490
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| Maturity: | Jan. 24, 2025
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | Full exposure to loss
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| Call: | At par plus 10.76% annualized if the closing level of the basket is greater than or equal to its initial value on any quarterly valuation date, including maturity
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| Initial levels: | $81.76 for Energy, $37.67 for Financial, $112.12 for Industrial
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| Pricing date: | Jan. 11
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| Settlement date: | Jan. 19
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| Agent: | BofA Securities, Inc.
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| Fees: | 1.25%
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| Cusip: | 403954696
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