By William Gullotti
Buffalo, N.Y., March 9 – HSBC USA Inc. priced $6.9 million of 0% autocallable barrier notes with step-up premium due March 5, 2026 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 plus a 9.65% annualized call premium if the index closes at or above its call level on any quarterly observation date after six months. Call level starts at 100% of initial level and steps down by 5% on each May observation date.
If the notes are not called at maturity, the payout will be par unless the index has finished below its 80% barrier level, in which case investors will lose 1% for each 1% decline of the index from its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
|
Issue: | Autocallable barrier notes with step-up premium
|
Underlying index: | S&P 500 index
|
Amount: | $6,898,000
|
Maturity: | March 5, 2026
|
Coupon: | 0%
|
Price: | Par
|
Payout at maturity: | Par unless the index finishes below barrier level, in which case investors will lose 1% for each 1% decline from initial level
|
Call: | At par plus a 9.65% annualized call premium if the index closes at or above its call level on any quarterly observation date after six months; call level starts at 100% of initial level and steps down by 5% on each May observation date
|
Initial index level: | 3,970.15
|
Barrier level: | 3,176.12; 80% of initial level
|
Pricing date: | Feb. 28
|
Settlement date: | March 3
|
Agent: | HSBC Securities (USA) Inc.
|
Fees: | 2%
|
Cusip: | 40441XN55
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.