By Wendy Van Sickle
Columbus, Ohio, Nov. 22 – HSBC USA Inc. priced $2.23 million of 0% autocallable notes due Nov. 23, 2020 linked to the Market Vectors Gold Miners exchange-traded fund and the SPDR S&P Metals and Mining exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par plus 14% per year if each ETF closes at or above its initial share price on any annual observation date.
If each ETF’s final share price is greater than or equal to its initial share price, the payout at maturity will be par plus 42%. If the final share price of the lesser-performing ETF is less than its initial share price but greater than or equal to its barrier price, 50% of its initial share price, the payout will be par. If the final share price of the lesser-performing ETF is less than its barrier price, investors will lose 1% for every 1% that the lesser-performing ETF declines from its initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable notes
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| Underlying assets: | Market Vectors Gold Miners exchange-traded fund and SPDR S&P Metals and Mining exchange-traded fund
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| Amount: | $2.23 million
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| Maturity: | Nov. 23, 2020
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| Coupon: | 0%
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| Price: | Par
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| Call: | Automatically at par plus 14% a year if both assets close above their initial levels on any annual observation date
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| Payout at maturity: | If each fund finishes at or above initial price, par plus 42%; par if least performing fund falls by up to 50%; otherwise, full exposure to loss of lesser performing fund
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| Initial levels: | $22.79 for Gold Miners and $30.92 for Metals
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| Barrier levels: | $11.395 for Gold Miners and $15.46 for Metals; 50% of initial levels
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| Pricing date: | Nov. 17
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| Settlement date: | Nov. 22
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40435FLU9
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