By Wendy Van Sickle
Columbus, Ohio, Nov. 2 – HSBC USA Inc. priced $3.9 million of callable notes with contingent return due May 2, 2024 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent coupon each six months at an annual rate of 10.8% if the index closes at or above its barrier level, 70% of its initial level, on the observation date for that period.
The notes are callable at par semiannually after one year.
The payout at maturity will be par plus the final contingent coupon unless the index finishes below its barrier level, in which case investors will be fully exposed to the decline of the index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable notes with contingent return
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| Underlying index: | S&P 500
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| Amount: | $3.9 million
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| Maturity: | May 2, 2024
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| Coupon: | 10.8% per year, payable each six months if the index closes at or above barrier level on observation date for that period
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless the index finishes below barrier level, in which case full exposure to decline of index
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| Call option: | At par semiannually after one year
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| Initial index level: | 3,901.06
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| Barrier level: | 2,730.742; 70% of initial level
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| Pricing date: | Oct. 28
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| Settlement date: | Nov. 2
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0%
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| Cusip: | 40441XSZ4
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