By Wendy Van Sickle
Columbus, Ohio, Sept. 12 – HSBC USA Inc. priced $10 million of phoenix monthly review notes with a memory coupon feature due Sept. 11, 2024 linked to the shares of the SPDR S&P 500 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 10.930008% if the shares close at or above their 90% coupon barrier on the corresponding observation date. If a coupon payment is missed because the ETF closes below the barrier, it will be paid on the next coupon payment date that the ETF closes at or above the barrier.
The notes will be called at par plus the contingent coupon if the shares close at or above the initial price on any monthly observation date.
The payout at maturity will be par plus the contingent coupon unless the shares finish below the 90% trigger level, in which case investors will lose 1.1111% per 1% decline below the trigger price.
HSBC Securities (USA) Inc. is the underwriter, and JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Phoenix monthly review notes with memory coupon
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| Underlying ETF: | SPDR S&P 500 ETF Trust
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| Amount: | $10 million
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| Maturity: | Sept. 11, 2024
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| Coupon: | 10.930008% annual rate, payable monthly if ETF closes at or above coupon barrier on the corresponding observation date; if coupon payment is missed, it will be paid on next coupon payment date that ETF closes at or above barrier
|
| Price: | Par
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| Payout at maturity: | Par plus coupon unless ETF finishes below trigger level, in which case 1.1111% loss per 1% decline beyond 10%
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| Call: | At par plus coupon if ETF closes at or above initial level on any monthly determination date
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| Initial level: | $446.22
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| Trigger level: | $401.598; 90% of initial level
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| Pricing date: | Sept. 6
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| Settlement date: | Sept. 11
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| Agent: | HSBC Securities (USA) Inc.
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| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
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| Fees: | 0.1%
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| Cusip: | 40447AMM3
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