By William Gullotti
Buffalo, N.Y., Sept. 27 – HSBC USA Inc. priced $500,000 of 0% buffered uncapped market participation securities with call feature due July 9, 2024 tied to the stock performance of Apple Inc., Qualcomm Inc. and UnitedHealth Group Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at par plus 9.5% if each stock closes at or above 90% of its initial level on Jan. 5, 2022
If the notes are not called, the payout at maturity will be par plus twice any gain of the least performing stock.
If any stock falls but the lowest stock drops by no more than 25% of its initial level, investors will receive par.
Otherwise, investors will lose 1.333% for each 1% drop of the lowest stock beyond 25%, payable in shares of that stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Buffered uncapped market participation securities with call feature
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| Underlying stocks: | Apple Inc., Qualcomm Inc., UnitedHealth Group Inc.
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| Amount: | $500,000
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| Maturity: | July 9, 2024
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus twice any gain of least performing stock; par if any stock falls but lowest stock drops by no more than 25% of initial level; otherwise, 1.333% loss for each 1% drop of lowest stock beyond 25%, payable in shares of that stock
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| Call: | At par plus 9.5% if all stocks close at or above 90% of their initial levels on Jan. 5, 2022
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| Initial levels: | $142.02 for Apple, $141.19 for Qualcomm, $410.26 for UnitedHealth
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| Buffer level: | 75% of initial levels
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| Pricing date: | July 6
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| Settlement date: | July 9
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40428HQN5
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