By William Gullotti
Buffalo, N.Y., Dec. 30 – HSBC USA Inc. priced $1.11 million of autocallable contingent income barrier notes due Dec. 2, 2024 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 8.5% if the index closes at or above its coupon barrier level, 60% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if the index closes at or above its initial level on any quarterly coupon observation date after six months.
The payout at maturity will be par plus the final coupon unless the index finishes below its 60% trigger level, in which case investors will be fully exposed to the decline of the index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying index: | S&P 500 index
|
| Amount: | $1,107,000
|
| Maturity: | Dec. 2, 2024
|
| Coupon: | 8.5%, payable monthly if the index closes at or above coupon barrier on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If the index finishes at or above trigger level, par plus final coupon; otherwise, exposure to decline of index from its initial level
|
| Call: | At par plus coupon if the index closes at or above initial level on any quarterly call observation date after six months
|
| Initial level: | 4,026.12
|
| Barrier level: | 2,415.672; 60% of initial level
|
| Trigger level: | 2,415.672; 60% of initial level
|
| Pricing date: | Nov. 25
|
| Settlement date: | Nov. 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.25%
|
| Cusip: | 40441XVL1
|
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