By Wendy Van Sickle
Columbus, Ohio, Dec. 30 – HSBC USA Inc. priced $1.04 million of callable notes with contingent return due Dec. 22, 2026 linked to the PowerShares QQQ Trust, Series 1 ETF and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 5% if each fund closes at or above the 65% trigger level on a quarterly observation date.
The notes will be callable quarterly.
The payout at maturity will be par plus the final contingent coupon, unless either fund finishes below its trigger level, in which case investors will be fully exposed to any losses of the worse performing fund.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable notes with contingent return
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| Underlying funds: | PowerShares QQQ Trust, Series 1 ETF and Financial Select Sector SPDR fund
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| Amount: | $1,035,000
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| Maturity: | Dec. 22, 2026
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| Coupon: | 5%, payable quarterly if each fund closes at or above trigger level on quarterly observation date
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless either fund finishes below trigger level, in which case full exposure to loss of worse performing fund
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| Call option: | At par on any quarterly call date
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| Initial levels: | $120.20 for PowerShares and $28.53 for Financial Select
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| Trigger levels: | $78.13 for PowerShares and $15.327 for Financial Select; 65% of initial levels
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| Pricing date: | Dec. 23
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| Settlement date: | Dec. 30
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40433UF43
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