By William Gullotti
Buffalo, N.Y., April 12 – HSBC USA Inc. priced $4 million of 0% buffered Accelerated Market Participation Securities due July 17, 2026 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index gains more than 21%, the payout at maturity will be par plus 1.584 times the quantity of 30.52% plus the index’s gain above 21%, subject to a maximum payout of par plus 62.2%.
If the index finishes flat or gains up to 21%, the payout will be par plus 1.12 times the quantity of the index return plus an additional 7%.
If the index declines no more than 10%, the payout will be par plus 0.7 times the quantity of the index return plus an additional 10%.
Otherwise, investors will lose 1% for every 1% decline beyond the 10% buffer.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Buffered Accelerated Market Participation Securities
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| Underlying index: | Russell 2000 index
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| Amount: | $4 million
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| Maturity: | July 17, 2026
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| Coupon: | 0%
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| Price: | Par
|
| Payout at maturity: | If the index gains more than 21%, par plus 1.584 times the quantity of 30.52% plus the index’s gain above 21%, maximum payout capped at par plus 62.2%; if index finishes flat or gains up to 21%, the payout will be par plus 1.12 times the quantity of the index return plus an additional 7%; if the index declines no more than 10%, the payout will be par plus 0.7 times the quantity of the index return plus an additional 10%; otherwise, 1% loss for every 1% index declines beyond 10% buffer
|
| Initial index level: | 4,530.41
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| Buffer level: | 90% of initial level
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| Strike date: | April 1
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| Pricing date: | April 4
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| Settlement date: | April 7
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| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 0.25%
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| Cusip: | 40439JV69
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