By Wendy Van Sickle
Columbus, Ohio, June 3 – HSBC USA Inc. priced $19.93 million of 0% autocallable market-linked step-up notes due May 27, 2022 tied to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus an annualized call premium of 9.34% if the index closes at or above the initial level on an annual observation date.
If the notes are not called and the index finishes above the step-up value, 130% of the initial level, the payout at maturity will be par plus the index gain.
If the index finishes at or below the step-up level but at or above the initial level, the payout will be par plus the step-up payment of 30%.
Investors will lose 1% for each 1% decline of the index.
BofA Merrill Lynch is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying index: | Russell 2000
|
| Amount: | $19,930,040
|
| Maturity: | May 27, 2022
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If the index finishes above the step-up value, par plus the index gain; if the index finishes at or below the step-up level but at or above the initial level, par plus 30%; 1% loss for each 1% decline of the index
|
| Call: | Automatically at par plus an annual call premium of 9.34% if the index closes at or above the initial level on an annual observation date
|
| Initial index level: | 1,485.531
|
| Step-up value: | 1,931.190, 130% of initial value
|
| Pricing date: | May 30
|
| Settlement date: | June 7
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 40436B873
|
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