By Kiku Steinfeld
Chicago, Aug. 31 – HSBC USA Inc. priced $1.23 million of autocallable contingent income barrier notes due Aug. 26, 2025 linked to the least performing of the Technology Select Sector SPDR fund, the Health Care Select Sector SPDR fund and the Consumer Staples 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 5% if each ETF closes at or above its coupon trigger level, 65% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each ETF closes at or above its initial level on any coupon observation date after one year.
The payout at maturity will be par plus the final coupon if each ETF finishes at or above its coupon trigger level. If any ETF finishes below its coupon trigger level but no ETF declines by more than 41%, the payout will be par. Otherwise, investors will be fully exposed to the decline of the lowest performing ETF.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying ETFs: Technology Select Sector SPDR fund, Health Care Select Sector SPDR fund and Consumer Staples Select Sector SPDR fund
|
| Amount: | $1,225,000
|
| Maturity: | Aug. 26, 2025
|
| Coupon: | 5% per year, payable quarterly if each ETF closes at or above coupon trigger level on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If each ETF finishes at or above coupon trigger level, par plus coupon; if any ETF finishes below coupon trigger level but no ETF declines by more than 41%, par; otherwise, exposure to decline of worst-performing ETF
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after one year
|
| Initial levels: | $117.94 for Technology, $64.30 for Consumer Staples and $106.82 for Health Care
|
| Coupon trigger levels: | 65% of initial levels
|
| Pricing date: | Aug. 21
|
| Settlement date: | Aug. 26
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.35%
|
| Cusip: | 40438CTT8
|
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