By Sarah Lizee
Olympia, Wash., July 20 – HSBC USA Inc. priced $2.44 million of 0% buffered Accelerated Market Participation Securities due March 4, 2024 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the return of the lesser performing index is greater than negative 8.5%, the payout at maturity will be par plus 175% times the return of the lesser performing index, plus the return booster of 8.5%, up to a 70% return cap.
Investors will receive par if either index declines more than 8.5% but less than or equal to the 18.5% buffer.
Otherwise, investors will lose 1% for every 1% that the lesser performing index declines beyond 18.5%.
The initial level of each index will be the arithmetic average of its closing levels on the initial level valuation dates, which will be the weekly anniversaries of the pricing date, July 17, during a three-month period beginning on the pricing date.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Buffered accelerated market participation securities
|
| Underlying indexes: | S&P 500, Russell 2000
|
| Amount: | $2.44 million
|
| Maturity: | March 4, 2024
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If return of lesser performing index is greater than negative 8.5%, par plus 175% times the return of the lesser performing index, plus the return booster of 8.5%, up to a 70% return cap; par if either index declines more than 8.5% but less than or equal to the 18.5% buffer; 1% loss for every 1% the lesser performing index declines beyond 18.5%
|
| Initial levels: | Average of closing levels on the weekly anniversaries of the pricing date during a three-month period beginning July 17
|
| Pricing date: | July 17
|
| Settlement date: | July 20
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1%
|
| Cusip: | 40435FQ75
|
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