By Wendy Van Sickle
Columbus, Ohio, Feb. 23 – HSBC USA Inc. priced $2.12 million of callable notes with contingent return due Feb. 26, 2021 linked to the Technology Select Sector SPDR Fund and the SPDR S&P Biotech exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent semiannual coupon at an annual rate of 12.5% if each fund closes at or above the 70% trigger level on the related observation date.
The notes will be callable each six months.
The payout at maturity will be par plus the final contingent coupon, unless either fund finishes below its trigger level, in which case investors will be fully exposed to any losses of the worse performing fund.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable notes with contingent return
|
| Underlying funds: | SPDR S&P Biotech exchange-traded fund and Technology Select Sector SPDR fund
|
| Amount: | $2,124,000
|
| Maturity: | Feb. 26, 2021
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| Coupon: | 12.5%, payable semiannually if each fund closes at or above trigger level on related observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless either fund finishes below trigger level, in which case full exposure to loss of worse performing fund
|
| Call option: | At par on any semiannual call date
|
| Initial levels: | $92.47 for Biotech and $67.18 for Technology Select
|
| Trigger levels: | $64.73 for Biotech and $47.03 for Technology Select; 70% of initial levels
|
| Pricing date: | Feb. 16
|
| Settlement date: | Feb. 26
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0%
|
| Cusip: | 40435FSF5
|
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