Chicago, Oct. 20 – HSBC USA Inc. priced $1.26 million of 0% autocallable barrier notes with step-up premium due Oct. 18, 2027 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called automatically starting after one year and on any subsequent quarterly observation date at a premium of 10.5% per year if the index closes above its initial level.
The maturity date premium is 42%.
The payout at maturity will be par if the index finishes at or above its 70% barrier. Investors will lose 1% for every 1% that the index declines if it finishes below the barrier level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable barrier notes with step-up premium
|
| Underlying index: | S&P 500 index
|
| Amount: | $1,263,000
|
| Maturity: | Oct. 18, 2027
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 42% if called because index closes above initial level; if index finishes at or above barrier level par; 1% loss for every 1% that index declines if it ends below the barrier level
|
| Call: | Automatically at par plus 10.5% annualized premium starting after one year and on any subsequent quarterly observation date if index closes above initial level
|
| Initial level: | 4,327.78
|
| Barrier level: | 3,029.446, 70% of initial level
|
| Pricing date: | Oct. 13
|
| Settlement date: | Oct. 18
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.5%
|
| Cusip: | 40447APS7
|
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