Chicago, Aug. 20 – HSBC USA Inc. priced $3.47 million autocallable contingent income barrier notes due Aug. 14, 2026 linked to the least performing of the iShares MSCI EAFE index exchange-traded fund, the iShares FTSE China Large-Cap exchange-traded fund, and the S&P Midcap 400 ETF Trust, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 9% if each fund closes at or above its trigger level, 70% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each fund closes at or above its initial level on any coupon observation date beginning Aug. 11, 2020.
The payout at maturity will be par plus the final coupon unless any fund closes below 70% of its initial level, in which case investors will lose 1% for each 1% decline in the least performing fund.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying funds: | iShares MSCI EAFE index ETF, the iShares FTSE China Large-Cap ETF, and the S&P Midcap 400 ETF Trust
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| Amount: | $3,468,000
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| Maturity: | Aug. 14, 2026
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| Coupon: | 9%, payable quarterly if each fund closes at or above coupon barrier level on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | Par plus the coupon unless any fund closes below 70% of its initial level, in which case full exposure to the losses of the least performing fund
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after one year
|
| Initial level: | $62.94 for EAFE, $38.74 for FTSE and $346.42 Midcap
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| Coupon barrier: | $44.058 for EAFE, $27.118 for FTSE and $242.494 Midcap; 70% of initial levels
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| Trigger level: | $44.058 for EAFE, $27.118 for FTSE and $242.494 Midcap; 70% of initial levels
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| Pricing date: | Aug. 9
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| Settlement date: | Aug. 14
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.35%
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| Cusip: | 40435UUU6
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