By Susanna Moon
Chicago, Jan. 2 – HSBC USA Inc. priced $4.37 million of callable barrier notes with contingent return due Dec. 29, 2020 linked to the lesser performing of the SPDR S&P Biotech exchange-traded fund and the Technology Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 11.75% if each fund closes at or above its 70% coupon barrier on the observation date for that quarter.
The notes are callable at par on any semiannual review date after six months.
The payout at maturity will be par plus the contingent coupon unless either fund finishes below its 70% trigger level, in which case investors will be fully exposed to any losses of the worse performing fund.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable barrier notes with contingent return
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| Underlying funds: | SPDR S&P Biotech ETF and the Technology Select Sector SPDR fund
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| Amount: | $4.37 million
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| Maturity: | Dec. 29, 2020
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| Coupon: | 11.75% annualized, payable semiannually if each fund closes at or above 70% coupon barrier on review date for that period
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| Price: | Par
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| Payout at maturity: | Par unless either fund falls below 70% trigger, in which case full exposure to any losses of worse performing index
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| Call option: | At par on any semiannual review date beginning June 21, 2018
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| Initial levels: | $83.08 for biotech fund, $64.58 for tech fund
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| Trigger levels: | $58.156 for biotech fund, $45.206 for tech fund, 70% of initial levels
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| Pricing date: | Dec. 21
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| Settlement date: | Dec. 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40435FML8
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