By William Gullotti
Buffalo, N.Y., Aug. 13 – HSBC USA Inc. priced $1.32 million of autocallable contingent income barrier notes due June 23, 2026 linked to the performance of U.S. Global Jets ETF and SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 8.75% if each ETF closes at or above its coupon trigger level, 75% of its initial level, on the observation date for that period.
The notes will be called at par plus the coupon if each ETF closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and each ETF finishes at or above its coupon trigger level, the payout at maturity will be par plus the final coupon.
If any ETF falls below its coupon trigger level, but all finish at or above the 60% barrier value, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the least-performing ETF from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying ETFs: | U.S. Global Jets ETF, SPDR S&P Biotech ETF
|
| Amount: | $1,315,000
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| Maturity: | June 23, 2026
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| Coupon: | 8.75% per year, payable monthly if each ETF closes at or above coupon trigger on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If each ETF finishes at or above coupon trigger, par plus the final coupon; if any ETF lags below coupon trigger but all finish at or above barrier level, par; otherwise, full exposure to decline of least-performing ETF from its initial level
|
| Call: | At par plus coupon if each ETF closes at or above initial level on any quarterly call observation date after six months
|
| Initial levels: | $25.22 for Jets, $133.58 for Biotech
|
| Coupon triggers: | 75% of initial levels
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| Barrier levels: | 60% of initial levels
|
| Pricing date: | June 18
|
| Settlement date: | June 23
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40439JDG7
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