By Sarah Lizee
Olympia, Wash., May 13 – HSBC USA Inc. priced $405,000 of callable contingent income buffered securities due May 15, 2025 linked to the least performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each six months, the notes will pay a contingent coupon at the rate of 8% per year if each index closes at or above its coupon barrier level, 80% of its initial level, on the observation date that period.
If each index finishes at or above its buffer level, 80% of its initial level, the payout at maturity will be par plus the final coupon.
If any index finishes below its downside threshold, investors will lose 1% for every 1% decline of the lesser performing index beyond 20%.
The notes will be callable at par on any semiannual date.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income buffered securities
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| Underlying indexes: | S&P 500 and Russell 2000
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| Amount: | $405,000
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| Maturity: | May 15, 2025
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| Coupon: | 8% per year, payable semiannually if each index closes at or above coupon barrier level on observation date that period
|
| Price: | Par
|
| Payout at maturity: | Par if each index finishes at or above downside threshold; if any index finishes below buffer level, investors will lose 1% for every 1% decline of the lesser performing index beyond buffer
|
| Call option: | Callable at par on any semiannual date
|
| Initial levels: | 2,929.8 for S&P, 1,329.638 for Russell
|
| Coupon barrier/buffers: | 80% of initial levels
|
| Pricing date: | May 8
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| Settlement date: | May 15
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40438CFJ5
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