By Wendy Van Sickle
Columbus, Ohio, Dec. 13 – HSBC USA Inc. priced $9.18 million of contingent income autocallable securities due Dec. 14, 2026 linked to the worse performing of the Russell 2000 index and 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 7.13% if each index closes at or above the 60% coupon barrier level on the determination date for that month.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any annual call determination date beginning Dec. 9, 2021.
The payout at maturity will be par plus the final coupon unless either index finishes below the 50% downside threshold level, in which case investors will lose 1% for each 1% decline of the worse performing index.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying indexes: | Russell 2000 and S&P 500
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| Amount: | $9,182,000
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| Maturity: | Dec. 14, 2026
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| Coupon: | 7.13% annualized for each month that each index closes at or above 60% coupon barriers on determination date for that month
|
| Price: | Par
|
| Payout at maturity: | Par if each index finishes at or above downside threshold level; otherwise, 1% loss for each 1% decline of worse performing index
|
| Call: | At par plus contingent payment if each index closes at or above initial level on any annual call determination date beginning Dec. 9, 2021
|
| Initial levels: | 1,388.073 for Russell and 2,259.53 for S&P
|
| Coupon barriers: | 832.8438 for Russell and 1,355.718 for S&P; 60% of initial levels
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| Downside thresholds: | 694.0365 for Russell and 1,129.765 for S&P; 50% of initial levels
|
| Pricing date: | Dec. 9
|
| Settlement date: | Dec. 14
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.5%
|
| Cusip: | 40433UA48
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