By Marisa Wong
Morgantown, W.Va., Jan. 2 – HSBC USA Inc. priced $10.06 million of autocallable contingent income barrier notes due Dec. 27, 2019 linked to the SPDR S&P Biotech exchange-traded fund, the SPDR S&P Bank ETF and the VanEck Vectors Semiconductor ETF, according to a 424B2 filing with the Securities and Exchange Commission.
If each asset closes at or above its coupon trigger, 72% of its initial price, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annual rate of 15%.
The notes will be called at par plus the contingent coupon if each asset closes at or above its initial price on any quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless any asset finishes below the 72% barrier level, in which case investors will lose 1% for each 1% decline of the worst performing asset from its initial price.
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 Biotech ETF, SPDR S&P Bank ETF and VanEck Vectors Semiconductor ETF
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| Amount: | $10.06 million
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| Maturity: | Dec. 27, 2019
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| Coupon: | 15% annualized, payable each quarter that each asset closes at or above its coupon trigger on the observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless any asset finishes below barrier price, in which case 1% loss for each 1% decline of least performing asset from initial level
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| Call: | At par if each asset closes at or above initial level on any quarterly observation date
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| Initial prices: | $84.59 for Biotech ETF, $48.18 for Bank ETF and $99.16 for Semiconductor ETF
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| Coupon triggers: | $60.90 for Biotech ETF, $34.69 for Bank ETF and $71.40 for Semiconductor ETF; 72% of initial prices
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| Barriers: | $60.90 for Biotech ETF, $34.69 for Bank ETF and $71.40 for Semiconductor ETF; 72% of initial prices
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| Pricing date: | Dec. 22
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| Settlement date: | Dec. 28
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.75%
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| Cusip: | 40435FPN1
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