By Wendy Van Sickle
Columbus, Ohio, Sept. 16 – HSBC USA Inc. priced $6.83 million of trigger autocallable contingent yield notes due Sept. 15, 2026 linked to the lesser performing of the iShares Russell 2000 ETF and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.86% if each ETF closes at or above its coupon barrier, 70% of its initial level, on the observation date for that period.
The notes will be redeemed at par plus the coupon if both ETFs close above their initial levels on any quarterly observation date after six months.
The payout at maturity will be par plus the coupon unless either ETF finishes below its 70% downside threshold, in which case investors will lose 1% for each 1% decline of the worst performing ETF from its initial level.
HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Trigger autocallable contingent yield notes
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Underlying ETFs: | iShares Russell 2000 ETF and iShares MSCI Emerging Markets ETF
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Amount: | $6,834,200
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Maturity: | Sept. 15, 2026
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Coupon: | 8.86% annual rate, payable quarterly if each ETF closes at or above coupon barrier on observation date
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Price: | Par of $10
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Call: | At par plus the coupon if both ETFs close above their initial levels on any quarterly observation date after six months
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Payout at maturity: | Par plus the coupon if both ETFs finish above 70% of initial level; otherwise, 1% loss for each 1% decline of the worse performing ETF from initial level
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Initial levels: | $221.62 for Russell and $52.49 for Emerging Markets
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Coupon barriers: | $155.134 for Russell and $36.743 for Emerging Markets, 70% of initial levels
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Downside thresholds: | $155.134 for Russell and $36.743 for Emerging Markets, 70% of initial levels
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Pricing date: | Sept. 10
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Settlement date: | Sept. 15
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Agents: | HSBC Securities (USA) Inc. and UBS Financial Services Inc.
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Fees: | 0%
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Cusip: | 40439K219
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