By William Gullotti
Buffalo, N.Y., Oct. 4 – HSBC USA Inc. priced $23.38 million of 0% autocallable market-linked step-up notes due Sept. 26, 2025 linked to an equally-weighted basket of stocks, according to a 424B2 with the Securities and Exchange Commission.
The basket consists of the stocks of Goldman Sachs Group, Inc., JPMorgan Chase & Co. and Morgan Stanley.
The notes will be called at par plus an annual call premium of 22.2% if the basket closes at or above its initial level on any annual call date.
If the basket finishes above the step-up value, 145% of the initial level, the payout at maturity will be par of $10 plus the basket gain.
If the basket finishes flat or gains by up to the step-up level, the payout will be par plus the step-up payment of 45%.
Investors will be fully exposed to any basket decline.
BofA Securities, Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable market-linked step-up notes
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| Underlying stocks: | Goldman Sachs Group, Inc. (33.34% weight), JPMorgan Chase & Co. (33.33% weight), Morgan Stanley (33.33% weight)
|
| Amount: | $23,375,290
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| Maturity: | Sept. 26, 2025
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| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If the basket finishes above the step-up level, par plus the basket gain; if the basket finishes flat or gains up to the step-up level, par plus 45%; otherwise, full exposure to loss
|
| Call: | At par plus 22.2% per year if the basket closes at or above its initial level on any annual observation date
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| Initial level: | $296.11 for Goldman Sachs, $106.16 for JPMorgan, $79.86 for Morgan Stanley
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| Step-up value: | 145% of initial level
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| Pricing date: | Sept. 29
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| Settlement date: | Oct. 6
|
| Underwriter: | BofA Securities, Inc.
|
| Fees: | 2%
|
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| Cusip: | 40439N338
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