By Sarah Lizee
Olympia, Wash., Oct. 3 – HSBC USA Inc. priced $1.8 million of 0% Strategic Accelerated Redemption Securities due Oct. 7, 2022 linked to the worst performing of three airline industry stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying stocks are American Airlines Group Inc., Delta Air Lines, Inc. and JetBlue Airways Corp.
The notes will be called at a premium of 25.57% per year if the closing level of each stock is equal to or greater than its starting value on any of the annual observation dates.
If the notes are not called, investors lose 1% for each 1% decline of the worst performing stock.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Strategic Accelerated Redemption Securities
|
| Underlying stocks: | American Airlines Group Inc., Delta Air Lines, Inc. and JetBlue Airways Corp.
|
| Amount: | $1.8 million
|
| Maturity: | Oct. 7, 2022
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | Full exposure to loss
|
| Call: | At par plus 25.57% per year if the closing level of each stock is greater than its starting value on any annual observation dates
|
| Initial levels: | $41.33 for American, $57.83 for Delta, $19.36 for JetBlue
|
| Agent: | BofA Merrill Lynch
|
| Pricing date: | Sept. 28
|
| Settlement date: | Oct. 5
|
| Fees: | 2%
|
| Cusip: | 40435X140
|
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