By Cady Vishniac
Detroit, Jan. 15 – HSBC USA Inc. priced $3.69 million of autocallable contingent income barrier notes due Jan. 8, 2026 linked to the least performing of the S&P 500 index, the iShares MSCI Japan ETF and the VanEck Vectors Junior Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 11.75% if each asset closes at or above the coupon trigger level, 60% of the initial level, on the observation date for that quarter.
The notes will be called at par plus the coupon if each asset closes at or above the initial price on any quarterly observation date beginning after six months.
If the notes are not called and each asset finishes at or above the 60% barrier level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% decline of the least-performing asset 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 assets: | S&P 500 index, iShares MSCI Japan ETF and VanEck Vectors Junior Gold Miners ETF
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Amount: | $3,684,000
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Maturity: | Jan. 8, 2026
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Coupon: | 11.75%, payable quarterly if each asset closes at or above coupon trigger level on observation date for that quarter
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Price: | Par
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Payout at maturity: | If each asset finishes at or above barrier level, par plus the final coupon; otherwise, 1% loss for each 1% decline of the least-performing asset from initial level
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Call: | At par plus coupon if each asset closes at or above initial price on any quarterly observation date beginning after six months
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Initial levels: | 3,726.86 for S&P, $67.38 for iShares Japan and $58.14 for Gold
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Coupon trigger/barrier prices: | 60% of initial prices
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Pricing date: | Jan. 5
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Settlement date: | Jan. 12
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.25%
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Cusip: | 40438CH79
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