By Angela McDaniels
Tacoma, Wash., Nov. 22 – HSBC USA Inc. priced $8.52 million of callable notes with contingent return due Nov. 29, 2019 linked to the S&P 500 index and the SPDR S&P Oil & Gas Exploration and Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Every six months, the notes will pay a contingent coupon at an annual rate of 10.5% if each underlier closes at or above its barrier level, 60% of its initial level, on the observation date for that semiannual period.
The notes are callable at par semiannually.
The payout at maturity will be par plus the final contingent coupon unless either underlier finishes below its barrier level, in which case investors will be fully exposed to the decline of the worse-performing underlier.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Callable notes with contingent return
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Underliers: | S&P 500 index and SPDR S&P Oil & Gas Exploration & Production ETF
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Amount: | $8,521,000
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Maturity: | Nov. 29, 2019
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Coupon: | 10.5% per year, payable semiannually if each underlier closes at or above barrier level on observation date for that semiannual period
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Price: | Par
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Payout at maturity: | Par plus contingent coupon unless either underlier finishes below barrier level, in which case full exposure to decline of worse-performing underlier
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Call option: | At par semiannually
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Initial levels: | 2,181.90 for index and $38.35 for ETF
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Barrier levels: | 1,309.14 for index and $23.01 for ETF; 60% of initial levels
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Pricing date: | Nov. 18
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Settlement date: | Nov. 28
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.85%
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Cusip: | 40433UYC4
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