By Taylor Fox
New York, Nov. 2 – HSBC USA Inc. priced $486,000 of callable contingent income barrier notes due Oct. 6, 2023 linked to the least performing of the SPDR S&P Biotech ETF and the Technology Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Semiannually, the notes will pay a contingent coupon at an annual rate of 9.5% 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 can be called at par plus the contingent coupon on any semiannual call payment date.
The payout at maturity will be par plus the final coupon if each ETF finishes at or above its 60% barrier level. 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: | Callable contingent income barrier notes
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| Underlying ETFs: | SPDR S&P Biotech ETF and the Technology Select Sector SPDR fund
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| Amount: | $486,000
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| Maturity: | Oct. 6, 2023
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| Coupon: | 9.5% 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 barrier level, par plus coupon; otherwise, full exposure to losses of worst performer
|
| Call option: | At par plus the contingent coupon on any semiannual call payment date
|
| Initial levels: | $112.83 for Biotech and $117.93 for SPDR
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| Coupon/barrier levels: | 60% of initial levels
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| Pricing date: | Oct. 1
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| Settlement date: | Oct. 6
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40438CXE6
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