By Taylor Fox
New York, Oct. 26 – HSBC USA Inc. priced $1.92 million of autocallable contingent income barrier notes due Sept. 24, 2025 linked to the least performing of the Nasdaq-100 index and the S&P 500 index, 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 8.5% if each index closes at or above its trigger level, 80% of its initial level, on the observation date for that period.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any quarterly coupon observation date after one year.
The payout at maturity will be par plus the final coupon unless any index finishes below its 80% barrier level, in which case investors will be fully exposed to the decline of the lowest performing index.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying indexes: | Nasdaq-100 index and S&P 500 index
|
| Amount: | $1,915,000
|
| Maturity: | Sept. 24, 2025
|
| Coupon: | 8.5%, payable quarterly if each index closes at or above trigger level on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If each index finishes at or above trigger level, par; otherwise, exposure to decline of worst-performing index
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after one year
|
| Initial levels: | 10,980.22 for Nasdaq, 3,281.06 for S&P
|
| Coupon/trigger levels: | 80% of initial levels
|
| Pricing date: | Sept. 21
|
| Settlement date: | Sept. 24
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40438CWC1
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