By Marisa Wong
Los Angeles, Dec. 29 – HSBC USA Inc. priced $22.08 million of 0% autocallable market-linked step-up notes due Dec. 30, 2024 tied to a basket of three financial sector stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of approximately equal weights of Goldman Sachs Group, Inc., JPMorgan Chase & Co. and Morgan Stanley.
The notes will be called at par of $10 plus a premium of 13% per year if the basket closes at or above its initial level on either of two annual observation dates.
If the basket finishes above the step-up value, 135% of the initial value, the payout at maturity will be par plus the basket return.
If the basket return is zero or positive but the basket finishes at or below the step-up value, the payout will be par plus the step-up payment of 35%.
Investors will be exposed to any decline in the basket.
BofA Securities, Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying basket: | Goldman Sachs Group, Inc. (Symbol: GS) with 33.34% weight, JPMorgan Chase & Co. (Symbol: JPM) with 33.33% weight and Morgan Stanley (Symbol: MS) with 33.33% weight
|
| Amount: | $22,076,790
|
| Maturity: | Dec. 30, 2024
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If basket finishes above step-up value, par plus basket return; if basket stays flat or gains but finishes at or below step-up value, par plus 35%; full exposure to losses
|
| Call: | Automatically at par plus a premium of 13% per year if the basket closes at or above its initial level on either of two annual observation dates
|
| Initial prices: | $382.33 for Goldman, $156.70 for JPMorgan, $98.30 for Morgan Stanley
|
| Initial basket value: | 100
|
| Step-up value: | 135% of initial basket value
|
| Pricing date: | Dec. 22
|
| Settlement date: | Jan. 3
|
| Underwriter: | BofA Securities, Inc.
|
| Fees: | 2%
|
| Cusip: | 40439N700
|
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