By Marisa Wong
Los Angeles, March 5 – HSBC USA Inc. priced $19.09 million of 0% autocallable market-linked step-up notes due Feb. 28, 2025 tied to the Energy Select Sector SPDR fund, according to a 424B2 with the Securities and Exchange Commission.
The notes will be called at par of $10 plus an annual call premium of 16.5% if the ETF closes at or above its initial value on any annual call date.
If the ETF finishes above the step-up value – 150% of the initial value – the payout at maturity will be par plus the ETF gain.
If the ETF finishes flat or gains up to the step-up value, the payout will be par plus the step-up payment of 50%.
Investors will be fully exposed to any losses.
BofA Securities, Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying ETF: | Energy Select Sector SPDR fund
|
| Amount: | $19,086,920
|
| Maturity: | Feb. 28, 2025
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If the ETF finishes above the step-up value, par plus the ETF gain; if the ETF finishes flat or gains up to the step-up value, par plus 50%; full exposure to losses
|
| Call: | At par plus 16.5% per year if the ETF closes at or above its initial value on any annual observation date
|
| Initial value: | $45.31
|
| Step-up value: | $67.97, 150% of initial value
|
| Pricing date: | Feb. 27
|
| Settlement date: | March 6
|
| Underwriter: | BofA Securities, Inc.
|
| Fees: | 2%
|
| Cusip: | 40438G706
|
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