By Susanna Moon
Chicago, Sept. 28 – HSBC USA Inc. priced $43.05 million of autocallable market-linked step-up notes due Sept. 28, 2018 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus a call premium of 13.55% per year if the index closes at or above its initial level on either of two annual call observation dates.
If the notes are not called and the index finishes above the step-up value – 130% of the initial level – the payout at maturity will be par of $10.00 plus the index gain.
If the index gains by up to the step-up level, the payout will be par plus the step-up payment of 30%.
Investors will be exposed to any losses.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable market-linked step-up notes
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| Underlying index: | Euro Stoxx 50
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| Amount: | $43,046,870
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| Maturity: | Sept. 28, 2018
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| Coupon: | 0%
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| Price: | Par of $10.00
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| Payout at maturity: | If index finishes above step-up value, par plus index gain; if index gains by up to step-up level, par plus 30%; otherwise, investors will be exposed to any losses
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| Call: | At par plus a call premium of 13.55% per year if the index closes at or above its initial level on Oct. 7, 2016 or Sept. 22, 2017
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| Initial level: | 3,019.34
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| Step-up value: | 130% of initial level
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| Pricing date: | Sept. 24
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| Settlement date: | Oct. 1
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| Underwriter: | BofA Merrill Lynch
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| Fees: | 2%
|
| Cusip: | 40434K859
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