By Wendy Van Sickle
Columbus, Ohio, March 23 – HSBC USA Inc. priced $782,000 of 0% autocallable step-up notes due March 24, 2020 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium of 13% per year if the index closes at or above its initial level on any annual observation date.
If the index finishes above the step-up value – 130% of the initial level – the payout at maturity will be par of $10 plus the index gain.
If the index gains by up to the step-up level, the payout will be par plus the step-up payment of 30%.
Investors will be exposed to any index decline.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable step-up notes
|
| Underlying index: | Russell 2000
|
| Amount: | $782,000
|
| Maturity: | March 24, 2020
|
| Coupon: | 0%
|
| Price: | Par of $10.00
|
| Payout at maturity: | If the index finishes above the step-up value, par plus the index gain; if the index finishes at or below the step-up level but at or above the initial level, par plus 30%; exposure to losses
|
| Call: | At par plus 13% per year if the index closes at or above its initial level on any annual observation date
|
| Initial level: | 3,429.62
|
| Step-up value: | 130% of initial level
|
| Pricing date: | March 21
|
| Settlement date: | March 24
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 40433UY42
|
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