By Wendy Van Sickle
Columbus, Ohio, Nov. 20 – HSBC USA Inc. priced $20 million of 0% autocallable return notes due Nov. 27, 2024 linked to the American Depositary Shares of Alibaba Group Holding Ltd. and JD.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par plus a call premium of 17.07% a year if each asset closes at or above its initial level on any annual call date.
If the notes are not called, the payout at maturity will be par plus 68.28% unless any asset finishes below the trigger level, 60% of the initial level, in which case investors will lose 1% for every 1% that the least performing asset declines from its initial level.
HSBC Securities (USA) Inc. is the underwriter with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable return notes
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Underlying assets: | Alibaba Group Holding Ltd. and JD.com, Inc.
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Amount: | $20 million
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Maturity: | Nov. 27, 2024
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Coupon: | 0%
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Price: | Par
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Payout at maturity: | Par plus 68.28% unless any asset finishes below trigger level, in which case 1% loss for every 1% that the least performing asset declines from initial level
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Call: | Automatically at par plus call premium of 17.07% a year if each asset closes at or above initial level on any annual call date
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Initial index level: | $256.80 for Alibaba and $86.97 for JD
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Trigger level: | $154.08 for Alibaba and $52.182 for JD; 60% of initial level
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Pricing date: | Nov. 18
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Settlement date: | Nov. 23
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Underwriter: | HSBC Securities (USA) Inc.
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Agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
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Fees: | 0.6%
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Cusip: | 40438CD73
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