By William Gullotti
Buffalo, N.Y., March 31 – HSBC USA Inc. priced $4.01 million of callable notes with contingent return due March 30, 2026 linked to the performance of the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 9.25% if the index closes at or above the 70% coupon trigger level on the related observation date.
HSBC may call the notes on any semiannual coupon payment date.
The payout at maturity will be par plus the final contingent coupon unless the index finishes below its 70% barrier level, in which case investors will lose 1% for every 1% decline of the index from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable notes with contingent return
|
| Underlying index: | S&P 500 index
|
| Amount: | $4,006,000
|
| Maturity: | March 30, 2026
|
| Coupon: | 9.25%, payable semiannually if each asset closes at or above coupon trigger on related observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless the index finishes below barrier value, in which case investors will be fully exposed to index decline from initial level
|
| Call option: | At par on any semiannual coupon payment date
|
| Initial level: | 3,970.99
|
| Coupon trigger: | 2,779.693; 70% of initial level
|
| Barrier value: | 2,779.693; 70% of initial level
|
| Pricing date: | March 24
|
| Settlement date: | March 29
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40441XX88
|
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