By Wendy Van Sickle
Columbus, Ohio, April 1 – HSBC USA Inc. priced $1.64 million of 0% autocallable market-linked step-up notes due March 31, 2023 tied to the MSCI Emerging Markets index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus an annualized call premium of 14.05% if the index closes at or above the initial level on an annual observation date.
If the notes are not called and the index finishes above the step-up value, 130% of the initial level, the payout at maturity will be par plus the index gain.
If the index finishes at or below the step-up level but at or above the initial level, the payout will be par plus the step-up payment of 30%.
Investors will be fully exposed to any decline in the index.
BofA Securities, Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable market-linked step-up notes
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Underlying index: | MSCI Emerging Markets
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Amount: | $1,643,010
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Maturity: | March 31, 2023
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | If the index finishes above the step-up value, par plus the index gain; if the index finishes at or below the step-up level but at or above the initial level, par plus 30%; full exposure to any index loss
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Call: | Automatically at par plus an annual call premium of 14.05% if the index closes at or above the initial level on an annual observation date
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Initial index level: | 851.28
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Step-up value: | 1,106.66, 130% of initial value
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Pricing date: | March 26
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Settlement date: | April 2
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Underwriter: | BofA Securities, Inc.
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Fees: | 2%
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Cusip: | 40438J205
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