Chicago, July 21 – HSBC USA Inc. priced $6.87 million autocallable Strategic Accelerated Redemption Securities due July 27, 2029 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be automatically called at an annualized call premium of 7.15% if the closing level of the index is greater than or equal to its initial level on any annual determination date.
At maturity, the notes will be called if the index closes above its initial level.
The payout will be par if the index declines but finishes above the 85% threshold level.
Otherwise, investors lose 1% for each 1% decline in the index beyond the 15% buffer.
BofA Securities, Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable Strategic Accelerated Redemption Securities
|
| Underlying index: | S&P 500 index
|
| Amount: | $6,874,460
|
| Maturity: | July 27, 2029
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If not called, par if index closes above buffer level; otherwise, 1% loss for each 1% decline beyond buffer
|
| Call: | At par plus 7.15% annualized if the closing level of the index is greater than or equal to its initial value on any annual determination date
|
| Initial level: | 4,510.04
|
| Buffer level: | 3,833.53, 85% of initial level
|
| Pricing date: | July 13
|
| Settlement date: | July 20
|
| Agent: | BofA Securities, Inc.
|
| Fees: | 2%
|
| Cusip: | 44328M369
|
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