By Susanna Moon
Chicago, Dec. 2 – HSBC USA Inc. priced $2.5 million of contingent income buffered notes due May 30, 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 quarterly coupon at an annual rate of 6% if each index closes at or above the 80% coupon barrier level on the determination date for that quarter.
The payout at maturity will be par plus the contingent coupon unless the index finishes below the 80% threshold, in which case investors will be exposed to any losses beyond the buffer.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income buffered notes
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| Underlying index: | S&P 500
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| Amount: | $2.5 million
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| Maturity: | May 30, 2024
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| Coupon: | 6% annualized for each quarter that index closes at or above 80% coupon barrier on determination date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par if index gains or falls by up to 20%; otherwise, exposure to any losses beyond 20%
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| Initial level: | 2,201.72
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| Pricing date: | Nov. 28
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| Settlement date: | Nov. 30
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.4%
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| Cusip: | 40433UA71
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