By Kiku Steinfeld
Chicago, Sept. 2 – HSBC USA Inc. priced $5 million of 0% autocallable market-linked step-up notes due Aug. 28, 2025 linked to the Euro Stoxx 50 index, according to a 424B2 with the Securities and Exchange Commission.
The notes will be called at par plus an annual call premium of 6.25% if the index closes at or above its initial level on any annual call date.
If the index finishes above the step-up value – 140% of the initial level – the payout at maturity will be par of $10 plus the index gain.
If the index finishes flat or gains by up to the step-up level, the payout will be par plus the step-up payment of 40%.
Investors will receive par if the index declines by up to 15% and will lose 1% for every 1% decline beyond 15%.
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 index: | Euro Stoxx 50 index
|
| Amount: | $5,000,000
|
| Maturity: | Aug. 28, 2025
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If the index finishes above the step-up level, par plus the index gain; if the index finishes flat or gains up to the step-up level, par plus 40%; par if the index declines by up to 15%; 1% loss for every 1% decline beyond 15%
|
| Call: | At par plus 6.25% per year if the index closes at or above its initial level on any annual observation date
|
| Initial level: | 3,259.75
|
| Step-up value: | 4,563.65, 140% of initial level
|
| Buffer level: | 2,770.79, 85% of initial level
|
| Pricing date: | Aug. 21
|
| Settlement date: | Aug. 28
|
| Agent: | BofA Securities, Inc.
|
| Fees: | 2%
|
| Cusip: | 40438J163
|
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