By Tali Rackner
Minneapolis, Jan. 3 – HSBC USA Inc. priced $10.04 million of autocallable contingent income barrier notes due Dec. 27, 2019, 2019 linked to the SPDR S&P Bank exchange-traded fund, the SPDR S&P Biotech exchange-traded fund and the Technology Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
If each fund closes at or above its coupon barrier, 75% of its initial level, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annual rate of 15%.
The notes will be called at par plus the contingent coupon if each fund closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless any fund finishes below the 75% trigger level, in which case investors will lose 1% for each 1% decline of the least-performing fund from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying funds: | SPDR S&P Bank ETF, SPDR S&P Biotech ETF and Technology Select Sector SPDR Fund
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| Amount: | $10,036,000
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| Maturity: | Dec. 27, 2019
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| Coupon: | 15% annualized, payable each quarter that each fund closes at or above its coupon trigger on the observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless any fund finishes below trigger level, in which case 1% loss for each 1% decline of least-performing fund from initial level
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| Call: | At par if each fund closes at or above initial level on any quarterly observation date
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| Initial prices: | $48.18 for Bank ETF, $84.59 for Biotech ETF and $64.54 for Technology Select
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| Coupon triggers/barriers: | $36.14 for Bank ETF, $63.44 for Biotech ETF and $48.41 for Technology Select; 75% of initial prices
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| Pricing date: | Dec. 22
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| Settlement date: | Dec. 28
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.75%
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| Cusip: | 40435FPM3
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