By William Gullotti
Buffalo, N.Y., Oct. 12 – HSBC USA Inc. priced $2.28 million of autocallable contingent income barrier notes due Jan. 9, 2023 linked to the performance of SPDR S&P 500 ETF Trust and Invesco QQQ Trust, Series 1, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 7.25% if each ETF closes at or above its coupon trigger level, 75% of its initial level, on the observation date for that period.
The notes will be called at par plus the coupon if each ETF closes at or above its initial level on any monthly call observation date after six months.
If the notes have not been called, the payout at maturity will be par plus the final coupon unless either ETF closes below its 75% barrier value during the life of the notes and either ETF finishes below its initial level, in which case investors will lose 1% for every 1% that the lesser-performing ETF finishes below its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying ETFs: | SPDR S&P 500 ETF Trust, Invesco QQQ Trust, Series 1
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| Amount: | $2,280,000
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| Maturity: | Jan. 9, 2023
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| Coupon: | 7.25% per year, payable monthly if each ETF closes at or above coupon trigger on observation date for that period
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| Price: | Par
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| Payout at maturity: | Par plus the final coupon unless either ETF closes below its barrier value during the life of the notes and either ETF finishes below its initial level, in which case investors will lose 1% for every 1% that the lesser-performing ETF finishes below its initial level
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| Call: | At par plus coupon if each ETF closes at or above initial level on any monthly call observation date after six months
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| Initial levels: | $433.10 for SPDR, $357.38 for QQQ
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| Coupon triggers: | $324.825 for SPDR, $268.035 for QQQ; 75% of initial levels
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| Barrier levels: | $324.825 for SPDR, $268.035 for QQQ; 75% of initial levels
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| Pricing date: | Oct. 5
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| Settlement date: | Oct. 8
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40439JNH4
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