By Angela McDaniels
Tacoma, Wash., Aug. 23 – HSBC USA Inc. priced $2.2 million of callable barrier notes with contingent return due Aug. 25, 2027 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
Every six months, the notes will pay a contingent coupon at an annualized rate of 10.25% if the index closes at or above its coupon trigger, 83.5% of the initial index level, on the observation date for that semiannual period.
Beginning Aug. 27, 2018, the notes will be callable at par on any semiannual call payment date.
The payout at maturity will be par unless the index finishes below its barrier level, 70% of the initial index level, in which case investors will lose 1% for every 1% that the final index level is below the initial index level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable barrier notes with contingent return
|
| Underlying index: | Russell 2000
|
| Amount: | $2.2 million
|
| Maturity: | Aug. 25, 2027
|
| Coupon: | 10.25% per year, payable semiannually if index closes at or above coupon trigger on observation date for that semiannual period
|
| Price: | Par
|
| Payout at maturity: | Par unless index finishes below barrier level, in which case 1% loss for each 1% that index declines from initial level
|
| Call option: | Beginning Aug. 27, 2018, notes will be callable at par on any semiannual call payment date
|
| Initial index level: | 1,371.537
|
| Coupon trigger: | 1,145.233395, or 83.5% of initial index level
|
| Barrier level: | 960.0759, or 70% of initial index level
|
| Pricing date: | Aug. 22
|
| Settlement date: | Aug. 25
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40435FEL7
|
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