By Marisa Wong
Los Angeles, March 31 – HSBC USA Inc. priced $37.48 million of 0% autocallable market-linked step-up notes due April 2, 2024 tied to the iShares Global Clean Energy exchange-traded fund, 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 18.4% if the ETF closes at or above its initial value on an annual observation date.
If the notes are not called and the ETF finishes above the step-up value, 160% of the initial value, the payout at maturity will be par plus the ETF gain.
If the ETF finishes at or below the step-up value but at or above the initial value, the payout will be par plus the step-up payment of 60%.
Investors will be fully exposed to any ETF decline.
BofA Securities, Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying ETF: | iShares Global Clean Energy ETF
|
| Amount: | $37,483,860
|
| Maturity: | April 2, 2024
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If the ETF finishes above the step-up value, par plus ETF gain; if the ETF finishes at or below the step-up value but at or above the initial value, par plus 60%; full exposure to losses
|
| Call: | Automatically at par plus an annualized call premium of 18.4% if the ETF closes at or above the initial level on an annual observation date
|
| Initial value: | $22.51
|
| Step-up value: | $36.02, 160% of initial value
|
| Pricing date: | March 25
|
| Settlement date: | April 1
|
| Agent: | BofA Securities, Inc.
|
| Fees: | 2%
|
| Cusip: | 40438U697
|
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