Chicago, Nov. 2 – HSBC USA Inc. priced $17.52 million of 0% trigger autocallable notes due Nov. 2, 2023 tied to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus 7.65% per year if the index closes at or above its initial level on any quarterly observation date after six months.
The call level associated with the maturity date is 15.3%.
If the notes are not called, meaning the index has finished below its initial level, the payout at maturity will be par unless the index finishes below the downside threshold, 80% of the initial level, in which case investors will lose 1% for each 1% decline of the index from its initial level.
HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable notes
|
| Underlying index: | S&P 500
|
| Amount: | $17,517,690
|
| Maturity: | Nov. 2, 2023
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Call: | After six months, at par plus 7.65% per year if index closes at or above initial level on any quarterly observation date
|
| Payout at maturity: | If not called, par unless index finishes below downside threshold, in which case 1% loss for each 1% decline of index from initial level
|
| Initial level: | 4,605.38
|
| Downside threshold: | 3,684.304; 80% of initial level
|
| Pricing date: | Oct. 29
|
| Settlement date: | Nov. 3
|
| Agents: | HSBC Securities (USA) Inc. and UBS Financial Services Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40390L800
|
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