By Angela McDaniels
Tacoma, Wash., July 30 – HSBC USA Inc. priced $5.55 million of autocallable return notes due July 29, 2024 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Beginning Aug. 7, 2020, the notes will be automatically called at par plus a call premium of 10.3% per year if each index closes at or above its initial level on any quarterly observation date.
If the final index level is greater than or equal to the initial index level, the payout will be par plus 51.5%.
If the final index level is less than the initial index level but greater than or equal to the trigger level, 70% of the initial index level, the payout will be par.
If the final index level is less than the trigger level, investors will lose 1% for every 1% that the index declines form the initial level.
HSBC Securities (USA) Inc. is the underwriter. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are acting as placement agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable return notes
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| Underlying index: | Euro Stoxx 50
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| Amount: | $5.55 million
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| Maturity: | July 29, 2024
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| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final index level is greater than or equal to initial index level, par plus 51.5%; if final index level is less than initial index level but greater than or equal to trigger level, par; if final index level is less than trigger level, 1% loss for every 1% that index declines form initial level
|
| Call: | Beginning Aug. 7, 2020, automatically at par plus 10.3% per year if each index closes at or above initial level on any quarterly observation date
|
| Initial level: | 3,524.47
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| Trigger level: | 2,467.13, or 70% of initial level
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| Final level: | Average of index’s closing levels on five trading days ending July 24, 2024
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| Pricing date: | July 26
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| Settlement date: | July 31
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| Underwriter: | HSBC Securities (USA) Inc.
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| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 3%
|
| Cusip: | 40435UUP7
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