By Wendy Van Sickle
Columbus, Ohio, July 10 – HSBC USA Inc. priced $1.59 million of callable notes with contingent return due July 11, 2022 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund and the SPDR S&P Biotech exchange-traded 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 18.2% if each fund closes at or above the 70% coupon trigger level on the related observation date.
HSBC may call the notes every six months starting on July 8, 2020.
The payout at maturity will be par plus the final contingent coupon unless either fund finishes below its 70% barrier level, in which case investors will be fully exposed to any losses of the worse performing fund.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable notes with contingent return
|
| Underlying funds: | SPDR S&P Biotech exchange-traded fund and SPDR S&P Oil & Gas Exploration & Production exchange-traded fund
|
| Amount: | $1,587,000
|
| Maturity: | July 11, 2022
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| Coupon: | 18.2%, payable semiannually if each fund closes at or above coupon trigger level on related observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless either fund finishes below barrier level, in which case full exposure to loss of worse performing fund
|
| Call option: | At par on any semiannual call date starting July 8, 2020
|
| Initial levels: | $88.81 for Biotech and $26.18 for Oil & Gas
|
| Coupon trigger levels: | $62.223 for Biotech and $18.326 for Oil & Gas; 70% of initial levels
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| Barrier levels: | $62.223 for Biotech and $18.326 for Oil & Gas; 70% of initial levels
|
| Pricing date: | July 3
|
| Settlement date: | July 9
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40435USL9
|
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