By Sarah Lizee
Olympia, Wash., Feb. 11 – HSBC USA Inc. priced $4.78 million of callable contingent income barrier notes due Jan. 31, 2025 linked to the Euro Stoxx Banks index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate 8% if the index closes at or above the coupon trigger level, 65% of the initial level, on the observation date for that quarter.
The notes will be callable at par plus any coupon due on any quarterly observation date.
If the notes are not called and the index finishes at or above the 60% barrier level, the payout at maturity will be par plus the final coupon, if any. Otherwise, investors will lose 1% for each 1% decline of the index from its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable contingent income barrier notes
|
| Underlying index: | Euro Stoxx Banks index
|
| Amount: | $4,778,000
|
| Maturity: | Jan. 31, 2025
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| Coupon: | 8%, payable quarterly if index closes at or above coupon trigger level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If index finishes at or above barrier level, par plus any final coupon; otherwise, 1% loss for each 1% decline of the index from initial level
|
| Call option: | At par plus any coupon on any quarterly observation date
|
| Initial level: | 92.97
|
| Coupon trigger: | 60.4305, 65% of initial prices
|
| barrier level: | 55.782, 60% of initial prices
|
| Pricing date: | Jan. 28
|
| Settlement date: | Jan. 31
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 3%
|
| Cusip: | 40435UW34
|
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