By Angela McDaniels
Tacoma, Wash., Dec. 23 – HSBC USA Inc. priced $71.13 million of 0% autocallable market-linked step-up notes due Dec. 23, 2022 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par of $10 plus a call premium of 7.8% per year if the index closes at or above the initial level on Dec. 31, 2020 or Dec. 10, 2021.
If the notes are not called and the index finishes above the step-up value, 121% 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 21%.
If the final index level is less than the initial level, investors will have one-to-one exposure to the decline.
BofA Securities, Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying index: | S&P 500
|
| Amount: | $71,129,350
|
| Maturity: | Dec. 23, 2022
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If index finishes above step-up value, par plus index gain; if index finishes at or below step-up level but at or above initial level, par plus 21%; if index finishes below initial level, one-to-one exposure to decline
|
| Call: | Automatically at par plus call premium of 7.8% per year if index closes at or above initial level on Dec. 31, 2020 or Dec. 10, 2021
|
| Initial level: | 3,205.37
|
| Step-up value: | 121% of initial level
|
| Pricing date: | Dec. 19
|
| Settlement date: | Dec. 30
|
| Agent: | BofA Securities, Inc.
|
| Fees: | 2%
|
| Cusip: | 40438B467
|
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