By Kiku Steinfeld
Chicago, Aug. 25 – HSBC USA Inc. priced $1.31 million of callable contingent income barrier notes due July 31, 2030 linked to the Euro Stoxx Banks index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate 8% if the index closes at or above the trigger level, 60% of the initial level, on the observation date for that quarter.
The notes will be callable at par plus any coupon due on any quarterly observation date.
If the notes are not called and the index finishes at or above the trigger level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% decline of the index from its initial level.
HSBC Securities (USA) Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Callable contingent income barrier notes
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Underlying index: | Euro Stoxx Banks index
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Amount: | $1,305,000
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Maturity: | July 31, 2030
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Coupon: | 8%, payable quarterly if index closes at or above coupon trigger level on observation date for that quarter
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Price: | Par
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Payout at maturity: | If index finishes at or above barrier level, par plus final coupon; otherwise, 1% loss for each 1% decline of the index from initial level
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Call option: | At par plus any coupon on any quarterly observation date
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Initial level: | $62.32
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Trigger levels: | 60% of initial levels
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Pricing date: | July 29
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Settlement date: | July 31
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 4%
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Cusip: | 40438CQT1
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