By Sarah Lizee
Olympia, Wash., Aug. 13 – HSBC USA Inc. priced $1.26 million of callable notes with contingent return due Aug. 15, 2022 linked to the SPDR S&P Biotech ETF and the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 14.85% if each fund closes at or above the 70% coupon trigger level on the related observation date.
HSBC may call the notes on any semiannual coupon payment date starting Aug. 16, 2021.
The payout at maturity will be par plus the final contingent coupon unless either fund finishes below its 70% barrier level, in which case investors will be fully exposed to any losses of the worse performing fund.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable notes with contingent return
|
| Underlying funds: | SPDR S&P Biotech ETF and SPDR S&P Oil & Gas Exploration & Production ETF
|
| Amount: | $1,262,000
|
| Maturity: | Aug. 15, 2022
|
| Coupon: | 14.85%, payable semiannually if each fund closes at or above coupon trigger on related observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless either fund finishes below barrier value, in which case full exposure to losses of worse performing fund
|
| Call option: | At par on any semiannual coupon payment date starting Aug. 16, 2021
|
| Initial values: | $84.03 for biotech, $22.29 for oil
|
| Coupon triggers: | $58.821 for biotech, $15.603 for oil; 70% of initial values
|
| Barrier values: | $58.821 for biotech, $15.603 for oil; 70% of initial values
|
| Pricing date: | Aug. 9
|
| Settlement date: | Aug. 14
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40435UVA9
|
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