By Wendy Van Sickle
Columbus, Ohio, Feb. 9 – HSBC USA Inc. priced $1 million of autocallable contingent income barrier notes due Feb. 10, 2021 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a semiannual contingent coupon at a rate of 10.75% per year if the index closes at or above the interest barrier level, 75% of the initial level, on the review date for that period.
The notes will be automatically called at par plus the contingent coupon if the index closes at or above the initial level on any review date.
The payout at maturity will be par plus the final contingent interest payment unless the final index level is less than the 75% trigger level, in which case investors will be fully exposed to the index’s decline.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying index: | Russell 2000
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| Amount: | $1 million
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| Maturity: | Feb. 10, 2021
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| Coupon: | 10.75% payable semiannually if index closes at or above 75% of initial level on observation date
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| Price: | Par
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| Call: | At par plus the contingent coupon if the index closes at or above the initial level on any review date
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| Payout at maturity: | Par plus final contingent interest payment unless final index level is less than 75% trigger level, in which case full exposure to index’s decline
|
| Initial index level: | 985.618
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| Pricing date: | Feb. 5
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| Settlement date: | Feb. 10
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40433UHR0
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