By Sarah Lizee
Olympia, Wash., July 8 – HSBC USA Inc. priced $970,000 of 0% autocallable buffered notes with step-up premium due June 30, 2026 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a 7.25% annualized premium if the index closes at or above the call threshold on any annual call observation date. The call threshold will be 100% of the initial level.
If the notes are not called and the index finishes above 125% of its initial level, the payout will be par plus the return of the index.
If the index finishes above its initial level but less than or equal to 125% of its initial level, the payout will be par plus 25%.
If the index falls by up to 15%, the payout will be par.
Otherwise, investors will lose 1% for every 1% decline of the index beyond the buffer.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable buffered notes with step-up premium
|
| Underlying index: | S&P 500 index
|
| Amount: | $970,000
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| Maturity: | June 30, 2026
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| Coupon: | 0%
|
| Price: | Par
|
| Call: | At par plus a 7.25% annualized premium if each index closes at or above the call threshold on any annual call observation date; call threshold will be 100% of the initial level
|
| Payout at maturity: | If the notes are not called and the index finishes above 125% of its initial level, par plus the return of the index; if the index finishes above its initial level but less than or equal to 125% of its initial level, par plus 25%; if the index falls by up to 15%, par; 1% loss for every 1% decline of the index beyond the buffer
|
| Initial level: | 3,009.05
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| Buffer level: | 85% of initial level
|
| Pricing date: | July 26
|
| Settlement date: | June 30
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 2.35%
|
| Cusip: | 40438CNA5
|
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