By Wendy Van Sickle
Columbus, Ohio, Oct. 7 – HSBC USA Inc. priced $1.03 million of callable contingent income barrier notes due Oct. 6, 2023 linked to the lesser performing of the Technology Select Sector SPDR fund and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Each six months, the notes will pay a contingent coupon at an annual rate of 8.2% if each ETF closes at or above its coupon trigger level, 60% of its initial level, on the observation date for that period.
The notes are callable at par plus the contingent coupon on any semiannual call observation date.
The payout at maturity will be par plus the final coupon if each ETF finishes at or above its coupon trigger level. Otherwise, investors will be fully exposed to the decline of the lesser-performing ETF.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes
|
| Amount: | $1,029,000
|
| Underlying ETFs: | Technology Select Sector SPDR fund and SPDR S&P Biotech ETF
|
| Maturity: | Oct. 6, 2023
|
| Coupon: | 8.2% per year, payable semiannually 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; otherwise, exposure to decline of worst-performing ETF
|
| Call: | At par plus coupon on any semiannual call observation date
|
| Initial levels: | $112.83 for Biotech and $117.93 for Technology
|
| Coupon trigger levels: | 60% of initial levels
|
| Pricing date: | Oct. 1
|
| Settlement date: | Oct. 6
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40438CXD8
|
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