By Wendy Van Sickle
Columbus, Ohio, April 9 – HSBC USA Inc. priced $10 million of 0% market-linked step-up autocallable notes due April 11, 2023 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange.
The notes will be called at par plus an annual call premium of 6.5% if the index closes at or above its initial level on any annual call date.
If the index finishes above the step-up level – 125% of the initial level – the payout at maturity will be par of $10 plus the index gain.
If the index gains by up to the step-up level, the payout will be par plus the step-up payment of 25%.
Investors will receive par if the index falls by up to 20% and will be exposed to losses beyond 20%.
BofA Securities, Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Market-linked step-up autocallable notes
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| Underlying index: | S&P 500
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| Amount: | $10 million
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| Maturity: | April 11, 2023
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| Coupon: | 0%
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| Price: | Par of $10
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| Payout at maturity: | If the index finishes above the step-up level, par plus the index gain; if the index gains by up to the step-up level, par plus 25%; par if index falls by up to 20%; exposure to losses beyond 20%
|
| Call: | At par plus 6.5% per year if the index closes at or above its initial level on any annual observation date
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| Initial level: | 2,584.59
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| Step-up level: | 3,230.74, 125% of initial level
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| Threshold level: | 2,067.67, 80% of initial level
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| Pricing date: | March 31
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| Settlement date: | April 7
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| Agent: | BofA Securities, Inc.
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| Fees: | 1.5%
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| Cusip: | 40438J817
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