By Angela McDaniels
Tacoma, Wash., Feb. 13 – HSBC USA Inc. priced $1 million of 0% autocallable notes due Feb. 14, 2022 linked to a biotechnology basket, according to a 424B2 filing with the Securities and Exchange Commission.
The basket consists of the iShares Nasdaq Biotechnology exchange-traded fund with a 67% weight and the common stocks of Amgen Inc., Biogen Inc. and Celgene Corp., each with an 11% weight.
The notes will be automatically called at par plus a call premium of 14% per year if the basket closes at or above its call value, 110% of the initial basket level, on any annual call observation date.
If the final basket level is greater than or equal to the call value, the payout at maturity will be par plus the applicable call premium. If the final basket level is less than the call value but greater than or equal to 85% of the initial basket level, the payout will be par. If the basket declines by more than 15%, investors will lose 1% for every 1% that the basket declines from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable notes
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| Underlying basket: | iShares Nasdaq Biotechnology ETF (67% weight), Amgen Inc. stock (11% weight), Biogen Inc. stock (11% weight) and Celgene Corp. stock (11% weight)
|
| Amount: | $1 million
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| Maturity: | Feb. 14, 2022
|
| Coupon: | 0%
|
| Price: | Par
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| Payout at maturity: | If final basket level is greater than or equal to 110% of initial basket level, par plus 70%; if final basket level is less than 110% of initial basket level but greater than or equal to 85% of initial basket level, par; if basket declines by more than 15%, 1% loss for every 1% that basket declines from initial level
|
| Call: | Automatically at par plus call premium of 14% per year if basket closes at or above 110% of initial basket level on any annual call observation date
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| Initial share prices: | $281.72 for ETF, $168.12 for Amgen, $268.74 for Biogen and $115.35 for Celgene
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| Pricing date: | Feb. 8
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| Settlement date: | Feb. 13
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| Underwriters: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40433UR40
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