By William Gullotti
Buffalo, N.Y., July 19 – HSBC USA Inc. priced $1.41 million of 0% autocallable market-linked step-up notes due July 29, 2027 linked to the MSCI Emerging Markets index, according to a 424B2 with the Securities and Exchange Commission.
The notes will be called at par plus an annual call premium of 10.94% if the index closes at or above its initial level on any annual call date.
If the index finishes above the step-up value, 135% 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 35%.
Investors will receive par if the index declines up to 10% and lose 1% for every 1% decline of the index beyond 10%.
BofA Securities, Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable market-linked step-up notes
|
| Underlying index: | MSCI Emerging Markets index
|
| Amount: | $1,411,500
|
| Maturity: | July 29, 2027
|
| 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 35%; if the index declines up to 10%, par; otherwise, 1% loss for every 1% decline below 10%
|
| Call: | At par plus 10.94% per year if the index closes at or above its initial level on any annual observation date
|
| Initial level: | 965.45
|
| Step-up value: | 1,303.36; 135% of initial level
|
| Threshold level: | 868.91; 90% of initial level
|
| Pricing date: | July 14
|
| Settlement date: | July 21
|
| Underwriter: | BofA Securities, Inc.
|
| Fees: | 2%
|
| Cusip: | 40390L230
|
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