By Wendy Van Sickle
Columbus, Ohio, Sept. 8 – HSBC USA Inc. priced $10 million of phoenix quarterly review notes with a memory coupon feature due Sept. 9, 2024 linked to the SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 10.9% if the shares close at or above their 90% trigger level on the observation date for that quarter. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be called at par plus the contingent coupon if the shares close at or above the initial level on any quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless the shares finish below the 90% trigger level, in which case investors will lose 1.11111% for every 1% decline beyond 10%.
HSBC Securities (USA) Inc. is the underwriter, and JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Phoenix quarterly review notes with memory coupon
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| Underlying fund: | SPDR S&P 500 ETF Trust
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| Amount: | $10 million
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| Maturity: | Sept. 9, 2024
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| Coupon: | 10.9% annual rate, payable quarterly if ETF closes at or above trigger level on observation date for that quarter; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
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| Payout at maturity: | Par plus all unpaid coupons unless ETF finishes below trigger level, in which case 1.11111% loss per 1% decline beyond 10%
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| Call: | Automatically at par plus coupon if ETF closes at or above initial level on any determination date
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| Initial level: | $451.19
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| Trigger level: | $406.071; 90% of initial level
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| Trade date: | Sept. 1
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| Pricing date: | Sept. 5
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| Settlement date: | Sept. 8
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| Agent: | HSBC Securities (USA) Inc.
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| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 0.1%
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| Cusip: | 40447AMF8
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