By William Gullotti
Buffalo, N.Y., Feb. 24 – HSBC USA Inc. priced $2 million of 0% dual directional barrier notes due April 29, 2024 linked to the lesser performing of the SPDR S&P Biotech ETF and the Technology Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the final level of each fund is greater than its initial level, the payout at maturity will be par plus 153% of the lesser-performing underlying’s return.
If the final level of either fund is less than or equal to its initial level but neither fund finishes below its barrier value, 75% of its initial level, the payout will be par plus the absolute value of the lesser-performing underlying’s return.
If either underlying fund finishes below its barrier value, investors will lose 1% for every 1% that the lesser-performing underlying declines from its initial level.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Dual directional barrier securities
|
| Underlying funds: | SPDR S&P Biotech ETF, Technology Select Sector SPDR fund
|
| Amount: | $2,000,000
|
| Maturity: | April 29, 2024
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | If final level of each underlying is greater than initial level, par plus 153% of lesser-performing underlying’s return; if final level of either underlying is less than or equal to initial level but neither underlying finishes below barrier value, par plus absolute value of lesser-performing underlying’s return; if either underlying fund finishes below barrier value, 1% loss for every 1% that lesser-performing underlying declines from initial level
|
| Initial levels: | $134.30 for Biotech ETF and $142.70 for Tech Select
|
| Barrier values: | 75% of initial levels
|
| Pricing date: | April 23, 2021
|
| Settlement date: | April 28, 2021
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 2.85%
|
| Cusip: | 40438C6E6
|
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