By Tali Rackner
Norfolk, Va., Dec. 21 – HSBC USA Inc. priced $2 million of contingent income barrier notes due Dec. 21, 2021 linked to the S&P MidCap 400 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 5.25% if the fund closes at or above the 60% coupon barrier level on the determination date for that quarter.
If the fund finishes at or above the 60% trigger level, the payout at maturity will be par of $1,000 plus the contingent payment.
Otherwise, investors will receive the number of shares equal to $1,000 divided by initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income barrier notes
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| Underlying fund: | S&P MidCap 400 ETF Trust
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| Amount: | $2 million
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| Maturity: | Dec. 21, 2021
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| Coupon: | 5.25% per year, payable quarterly if the fund stock closes at or above coupon trigger level on determination date for that quarter
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| Price: | Par of $1,000
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| Payout at maturity: | If the fund stock finishes at or above 40% barrier price, par plus final coupon; otherwise, number of shares equal to $1,000 divided by initial share price
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| Initial share price: | $257.35
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| Coupon trigger: | $154.41, 60% of initial share price
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| Pricing date: | Dec. 16
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| Settlement date: | Dec. 21
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40433UFC5
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