By Marisa Wong
Morgantown, W.Va., March 6 – HSBC USA Inc. priced $1.59 million of autocallable contingent income barrier notes due March 1, 2021 linked to the SPDR S&P Biotech exchange-traded fund and the Health Care Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
If each asset closes at or above its coupon trigger, 70% of its initial price, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annual rate of 8%.
The notes will be called at par plus the contingent coupon if each asset closes at or above its initial price on any quarterly observation date after six months.
The payout at maturity will be par plus the contingent coupon unless any asset finishes below the 70% barrier level, in which case investors will lose 1% for each 1% decline of the worst performing asset from its initial price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying ETFs: | SPDR S&P Biotech ETF, Health Care Select Sector SPDR fund
|
| Amount: | $1,586,000
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| Maturity: | March 1, 2021
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| Coupon: | 8% per year, payable each quarter that each asset closes at or above its coupon trigger on observation date that quarter
|
| Price: | Par
|
| Payout at maturity: | Par plus the contingent coupon unless any asset finishes below its barrier price, in which case 1% loss for each 1% decline of the worst performing asset from its initial price
|
| Call: | At par plus the contingent coupon if each asset closes at or above its initial price on any quarterly observation date after six months
|
| Initial prices: | $93.19 for biotech and $86.41 for health
|
| Coupon triggers: | $65.23 for biotech and $60.49 for health, 70% of initial prices
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| Barrier prices: | $65.23 for biotech and $60.49 for health, 70% of initial prices
|
| Pricing date: | Feb. 26
|
| Settlement date: | Feb. 28
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40435FUD7
|
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