By Angela McDaniels
Tacoma, Wash., Dec. 12 – HSBC USA Inc. priced $18.78 million of contingent coupon buffered securities with trigger upside and downside participation due Jan. 12, 2022 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event will occur if the index closes below its coupon trigger, 80% of the initial index level, on any day during the life of the notes.
Each month, the notes will pay a contingent coupon at the rate of 4.57% per year unless a knock-out event occurs during that month, in which case no coupon will be paid for that or any subsequent month.
The payout at maturity will be par unless a knock-out event has occurred, in which case the payout per $1,000 principal amount of notes will be $1,000 multiplied by 125% of the sum of one plus the index return plus 20%. This amount will be greater than par if the index return is greater than negative 20%.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent coupon buffered securities with trigger upside and downside participation
|
| Underlying index: | S&P 500
|
| Amount: | $18,776,000
|
| Maturity: | Jan. 12, 2022
|
| Coupon: | 4.57% per year, payable monthly unless index closes below coupon trigger during that month, in which case no coupon will be paid for that or any subsequent month
|
| Price: | Par
|
| Payout at maturity: | Par unless index closes below coupon trigger during life of notes, in which case $1,000 multiplied by 125% of sum of one plus index return plus 20%
|
| Initial index level: | 2,259.53
|
| Coupon trigger: | 1,807.624, 80% of initial level
|
| Pricing date: | Dec. 9
|
| Settlement date: | Dec. 14
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40433UZE9
|
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