By Angela McDaniels
Tacoma, Wash., June 27 – HSBC USA Inc. priced $443,000 of callable notes with contingent return due June 28, 2022 linked to the lesser performing of the S&P 500 index and the SPDR S&P Biotech exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Every six months, the notes will pay a contingent coupon at the rate of 10% per year if each underlying closes at or above its coupon trigger, 65% of its initial level, on the observation date for that semiannual period.
The notes are callable at par semiannually.
If the notes are not called, the payout at maturity will be par unless the return of the lesser-performing underlying is less than negative 35%, in which case investors will lose 1% for every 1% that the lesser-performing underlying declines from its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable notes with contingent return
|
| Underlyings: | S&P 500 and SPDR S&P Biotech ETF
|
| Amount: | $443,000
|
| Maturity: | June 28, 2022
|
| Coupon: | 10% per year, payable semiannually if each underlying closes at or above coupon trigger on observation date for that semiannual period
|
| Price: | Par
|
| Payout at maturity: | Par unless return of lesser-performing underlying is less than negative 35%, in which case 1% loss for every 1% that lesser-performing underlying declines from initial level
|
| Call option: | At par semiannually
|
| Initial levels: | 2,950.46 for index and $87.26 for ETF
|
| Coupon triggers: | 1,917.799 for index and $56.719 for ETF, or 65% of initial levels
|
| Pricing date: | June 21
|
| Settlement date: | June 28
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40435UQJ6
|
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