By William Gullotti
Buffalo, N.Y., May 26 – HSBC USA Inc. priced $3.49 million of autocallable contingent income barrier notes with memory coupon due May 26, 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 annualized rate of 9% if the index closes at or above the coupon trigger level, 70% of the initial level, on the relevant observation date. Previously unpaid coupons, if any, will be automatically included whenever a contingent coupon is paid.
The notes will be called at par plus the contingent coupon if the index closes at or above the initial level on any semiannual observation date.
The payout at maturity will be par plus all unpaid coupons unless the index finishes below its 70% barrier level, in which case investors will lose 1% for every 1% that the final level is less than the initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes with memory coupon
|
| Underlying index: | S&P 500 index
|
| Amount: | $3,492,000
|
| Maturity: | May 26, 2026
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| Coupon: | 9%, payable semiannually if the index closes at or above coupon trigger level on the relevant observation date; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
|
| Payout at maturity: | Par plus all unpaid coupons unless index finishes below barrier level, in which case investors will be fully exposed to the index’s decline from its initial level
|
| Call: | At par plus coupon if the index closes at or above initial level on any semiannual observation date
|
| Initial level: | 4,191.98
|
| Coupon trigger/barrier level: | 2,934.386; 70% of initial level
|
| Pricing date: | May 19
|
| Settlement date: | May 24
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40441X6D7
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