By Kiku Steinfeld
Chicago, April 12 – HSBC USA Inc. priced $1 million of 0% autocallable barrier notes with step-up premium and digital upside return due March 30, 2026 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium if the index closes at or above its initial level on any annual call date. The call premium is 8.8% per year.
If the index return is greater than 25%, the payout at maturity will be par plus the index return. If the index return is less than or equal to 25% but greater than zero, the payout will be par plus 25%. If the index return is less than or equal to zero but greater than or equal to negative 25%, the payout will be par. If the index return is less than negative 25%, investors will lose 1% for each 1% decline of the index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable barrier notes with step-up premium and digital upside return
|
| Underlying index: | Russell 2000 index
|
| Amount: | $1 million
|
| Maturity: | March 30, 2026
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If index return is greater than 25%, par plus index return; if index return is less than or equal to 25% but greater than zero, par plus 25%; if index return is less than or equal to zero but greater than or equal to negative 25%, par; if index return is less than negative 25%, 1% loss for each 1% decline of index
|
| Call: | At par plus 8.8% per year if index closes at or above its initial level on any annual call date
|
| Initial index level: | 2,134.266
|
| Barrier level: | 75% of initial levels
|
| Pricing date: | March 24
|
| Settlement date: | March 29
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.35%
|
| Cusip: | 40438C3U3
|
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