By Marisa Wong
Morgantown, W.Va., Feb. 13 – HSBC USA Inc. priced $2.5 million of autocallable contingent income barrier notes due Feb. 15, 2024 linked to the Market Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 8.75% if the fund closes at or above the barrier level, 50% of the initial level, on the determination date for that quarter.
The notes will be called at par plus the coupon if the fund closes at or above the initial price on any quarterly observation date beginning Aug. 10.
If the notes are not called and the fund finishes at or above the 50% trigger level, the payout at maturity will be par. Otherwise, investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable contingent income barrier notes
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Underlying fund: | Market Vectors Gold Miners ETF
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Amount: | $2.5 million
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Maturity: | Feb. 15, 2024
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Coupon: | 8.75%, payable quarterly if fund closes at or above trigger level on determination date for that quarter
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Price: | Par
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Payout at maturity: | If fund finishes at or above barrier level, par; otherwise, full exposure to losses
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Initial level: | $25.57
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Trigger/barrier level: | $12.785, 50% of initial price
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Pricing date: | Feb. 8
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Settlement date: | Feb. 15
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.85%
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Cusip: | 40433UR99
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