By Wendy Van Sickle
Columbus, Ohio, Oct. 1 – HSBC USA Inc. priced $698,000 of autocallable contingent income buffered notes with memory coupon due Sept. 27, 2021 linked to the SPDR S&P Oil & Gas Exploration & Production ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 6.3% per year if the underlier closes at or above its buffer level, 80% of its initial level, on the determination date for that month, in which case a coupon will also be paid for any previously unpaid month during the life of the notes.
After six months, the notes will be automatically called at par if the underlier closes at or above its initial level on any monthly determination date.
The payout at maturity will be par unless the underlier finishes below its buffer level, in which case investors will lose 1% for every 1% that the underlier declines beyond 20%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income buffered notes | with memory coupon
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| Underlier: | SPDR S&P Oil & Gas Exploration & ProductionETF
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| Amount: | $698,000
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| Maturity: | Sept. 27, 2021
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| Coupon: | 6.3% per year, payable monthly if the underlier closes at or above buffer level on determination date, in which case a coupon will also be paid for any previously unpaid month during the life of the notes
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| Price: | Par
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| Payout at maturity: | Par unless the underlier finishes below buffer level, in which case 1% loss for every 1% that the underlier declines beyond 20%
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| Call: | After six months, automatically at par if each underlier closes at or above initial level on any monthly determination date
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| Initial level: | $23.79
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| Buffer level: | $19.032; 80% of initial level
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| Pricing date: | Sept. 20
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| Settlement date: | Sept. 25
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 2.8%
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| Cusip: | 40435UYG3
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