By Sarah Lizee
Olympia, Wash., April 29 – HSBC USA Inc. priced $2.07 million autocallable contingent income barrier notes due April 28, 2022 linked to the least performing of the SPDR S&P Bank ETF, the SPDR S&P Biotech ETF and the Technology Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 15% if each fund closes at or above its trigger level, 51.75% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each fund closes at or above its initial level on any coupon observation date.
The payout at maturity will be par plus the final coupon unless any fund closes below 51.75% of its initial level, in which case investors will lose 1% for each 1% decline in the least performing fund.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying funds: | SPDR S&P Bank ETF, SPDR S&P Biotech ETF and Technology Select Sector SPDR fund
|
| Amount: | $2,071,000
|
| Maturity: | April 28, 2022
|
| Coupon: | 15%, payable quarterly if each fund closes at or above coupon barrier level on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | Par plus the coupon unless any fund closes below trigger level, in which case full exposure to the losses of the least performing fund
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date
|
| Initial level: | $27.43 for bank ETF, $93.78 for biotech ETF and $86.79 for technology ETF
|
| Coupon barriers: | 51.75% of initial levels
|
| Trigger levels: | 51.75% of initial levels
|
| Pricing date: | April 23
|
| Settlement date: | April 29
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.75%
|
| Cusip: | 40438CFC0
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