By Wendy Van Sickle
Columbus, Ohio, July 11 – HSBC USA Inc. priced $20.34 million of 0% autocallable market-linked step-up notes due June 26, 2020 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium of 7.1% 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 – 121% of the initial level – the payout at maturity will be par of $10 plus the index gain.
If the index finishes flat or gains by up to the step-up level, the payout will be par plus the step-up payment of 21%.
Investors will be exposed to any index decline.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying index: | S&P 500
|
| Amount : | $20,340,320
|
| Maturity: | June 26, 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 flat or increases up to the step-up level, par plus 21%; exposure to declines
|
| Call: | At par plus 7.1% per year if the index closes at or above its initial level on any annual observation date
|
| Initial level: | 2,419.70
|
| Step-up value: | 2,927.84, 121% of initial level
|
| Pricing date: | June 29
|
| Settlement date: | July 7
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 40435D243
|
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