By William Gullotti
Buffalo, N.Y., Aug. 23 – HSBC USA Inc. priced $3.64 million of callable contingent income barrier notes with memory coupon due Aug. 21, 2025 linked to the performance of the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 8.25% if the index closes at or above its trigger level, 70% of its initial level, on the observation date for that period. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be callable at par on any monthly call observation date after six months.
The payout at maturity will be par plus the final coupon if the index finishes at or above its 70% barrier level.
Otherwise, investors will be fully exposed to the decline of the index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes with memory coupon
|
| Underlying index: | S&P 500 index
|
| Amount: | $3,644,000
|
| Maturity: | Aug. 21, 2025
|
| Coupon: | 8.25%, payable monthly if the index closes at or above trigger level on determination date for that period; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
|
| Payout at maturity: | If the index finishes at or above barrier level, par plus final coupon; otherwise, full exposure to decline of index from initial level
|
| Call option: | At par on any monthly call observation date after six months
|
| Initial level: | 4,404.33
|
| Trigger level: | 3,083.031; 70% of initial level
|
| Barrier level: | 3,083.031; 70% of initial level
|
| Pricing date: | Aug. 16
|
| Settlement date: | Aug. 21
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.25%
|
| Cusip: | 40447AKM5
|
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