By Sarah Lizee
Olympia, Wash., Aug. 28 – HSBC USA Inc. priced $500,000 of autocallable contingent income barrier notes due Sept. 2, 2025 linked to the least performing of the S&P 500 index and the Market Vectors Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission
Each month, the notes will pay a contingent coupon at an annual rate of 8.88% if each asset closes at or above its coupon barrier, 60% of its initial level, on the observation date for that month.
The notes will be called at par plus the contingent coupon if each asset closes at or above its initial level on any coupon observation date after one year.
The payout at maturity will be par plus the final coupon unless either asset closes below the trigger, 60% of the initial level, in which case investors will be fully exposed to the losses of the worse-performing asset.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable contingent income barrier notes
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Underlying assets: | S&P 500 index and Market Vectors Gold Miners ETF
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Amount: | $500,000
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Maturity: | Sept. 2, 2025
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Coupon: | 8.88% per year, payable monthly if each asset closes at or above coupon barrier on determination date for that month
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Price: | Par
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Payout at maturity: | If each asset finishes at or above trigger level, par; otherwise, exposure to decline of worse-performing asset
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Call: | At par plus coupon if each asset closes at or above initial level on any monthly call observation date after one year
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Initial levels: | 3,478.73 for index, $41.60 for ETF
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Coupon barriers: | 60% of initial levels
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Trigger levels: | 60% of initial levels
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Pricing date: | Aug. 26
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Settlement date: | Aug. 31
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.75%
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Cusip: | 40438CTS0
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