By Wendy Van Sickle
Columbus, Ohio, June 14 – HSBC USA Inc. priced $6.36 million of 0% autocallable market-linked step-up notes due June 27, 2025 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus a premium of 11.6% per year if the index closes at or above its initial level on any annual observation date.
If the index finishes above the step-up value, 125% of the initial value, the payout at maturity will be par plus the index return.
If the index finishes at or below the step-up value but at or above the initial value, the payout will be par plus the step-up payment of 25%.
Investors will be fully exposed to any index decline.
BofA Securities, Inc. is the underwriter.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable market-linked step-up notes
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Underlying index: | S&P 500 index
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Amount: | $6,359,100
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Maturity: | June 27, 2025
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Coupon: | 0%
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Price: | Par of $10
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Payout at maturity: | If the index finishes above the step-up value, par plus the index return; if the index finishes at or below the step-up value but at or above the initial value, par plus 25%; full exposure to loss
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Call: | Automatically at par plus a premium of 11.6% per year if the index closes at or above its initial level on any annual observation date
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Initial value: | 4,017.82
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Step-up value: | 5,022.28, 125% of initial value
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Pricing date: | June 9
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Settlement date: | June 16
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Underwriter: | BofA Securities, Inc.
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Fees: | 2%
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Cusip: | 40390L339
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