By Wendy Van Sickle
Columbus Ohio, May 4 – HSBC USA Inc. priced $2 million of autocallable barrier notes with contingent return due March 29, 2022 linked to the SPDR Euro Stoxx 50 ETF, the SPDR S&P 500 ETF Trust and the iShares China Large-Cap exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 6.4% if each ETF closes at or above its 60% coupon barrier on the observation date.
The notes will be called at par if each ETF closes at or above its initial level on any observation date after one year.
The payout at maturity will be par plus the final coupon unless any underlying falls by more than 40%, in which case investors will be fully exposed to the decline of the worst performer.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with contingent return
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| Underlying assets: | SPDR Euro Stoxx 50 ETF, SPDR S&P 500 ETF Trust and the iShares China Large-Cap exchange-traded fund
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| Amount: | $2 million
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| Maturity: | March 29, 2022
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| Coupon: | 6.4%, payable semiannually if each ETF closes at or above coupon barrier on observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon unless any underlying falls by more than 40%, in which case investors will be fully exposed to the decline of the worst performer
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| Call: | Automatically at par if each underlying closes at or above trigger level on any observation date after a year
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| Initial levels: | $46.79 for SPDR Euro Stoxx, $266.31 for SPDR S&P and $41.58 for iShares China
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| Coupon barriers/triggers: | $28.074 for SPDR Euro Stoxx, $159.786 for SPDR S&P and $24.948 for iShares China; 60% of initial levels
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| Pricing date: | April 26
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| Settlement date: | May 1
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 1.75%
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| Cusip: | 40435M443
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