By Wendy Van Sickle
Columbus, Ohio, Oct. 28 – HSBC USA Inc. priced $692,000 of callable contingent income barrier notes due Oct. 28, 2025 linked to the least performing of the Dow Jones industrial average and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annualized rate of 6.5% if each index closes at or above the coupon trigger level, 70% of the initial level, on the observation date for that period.
The notes will be callable at par plus any coupon due on any semiannual observation date after one year.
If the notes are not called and each index finishes at or above the 70% barrier level, the payout at maturity will be par plus the final coupon, if any. Otherwise, investors will lose 1% for each 1% decline of the least-performing index from its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable contingent income barrier notes
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| Underlying indexes: | Dow Jones industrial average, S&P 500
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| Amount: | $692,000
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| Maturity: | Oct. 28, 2025
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| Coupon: | 6.5%, payable semiannually if each index closes at or above coupon trigger level on observation date for that period
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par plus any final coupon; otherwise, 1% loss for each 1% decline of the least-performing index from initial level
|
| Call option: | At par plus any coupon on any semiannual observation date after one year
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| Initial levels: | 3,465.39 for S&P and 28,335.57 for Dow
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| Coupon trigger: | 70% of initial prices
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| Barrier levels: | 70% of initial prices
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| Pricing date: | Oct. 23
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| Settlement date: | Oct. 28
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40438CYK1
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