By Wendy Van Sickle
Columbus, Ohio, Feb. 9 – HSBC USA Inc. priced $1 million of 0% autocallable notes due Feb. 14, 2022 linked to a basket consisting of the iShares Nasdaq Biotechnology exchange-traded fund and three biotechnology sector stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The ETF has a 67% weight in the basket, and each of the three stocks – Amgen Inc., Biogen Inc. and Celgene Corp. – has an 11% weight.
The notes will be called at par plus an annualized call premium of 14% if the basket closes at or above 110% of its initial level on any of the annual call observation dates.
If the basket finishes at or above the 110% call level, the payout at maturity will be par plus the final call premium of 70%.
If the basket finishes below the call level but at or above the 85% barrier level, the payout will be par.
If the basket finishes below the barrier level, investors will be fully exposed to any basket decline.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable notes
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| Basket components: | iShares Nasdaq Biotechnology exchange-traded fund, 67% weight; Amgen Inc., 11% weight; Biogen Inc., 11% weight; and Celgene Corp., 11% weight
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| Amount: | $1 million
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| Maturity: | Feb. 14, 2022
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If basket finishes at or above the 110% call level, par plus final call premium of 70%; if basket finishes below call level but at or above 85% barrier level, par; if basket finishes below barrier level, full exposure to any basket decline
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| Call: | At par plus an annualized call premium of 14% if the basket closes at or above 110% of its initial level on any annual call observation date
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| Initial prices: | $281.52 for ETF, $168.12 for Amgen, $268.74 for Biogen, $115.35 for Celgene
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| Pricing date: | Feb. 8
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| Settlement date: | Feb. 13
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40433UR40
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