By Marisa Wong
Morgantown, W.Va., July 3 – HSBC USA Inc. priced $3.76 million of callable notes with contingent return due June 29, 2021 linked to the SPDR S&P Biotech exchange-traded fund and the Technology Select Sector SPDR 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 9.25% if each fund closes at or above the 70% coupon trigger level on the related observation date.
HSBC may call the notes every six months from Dec. 19, 2018 to Dec. 29, 2020.
The payout at maturity will be par plus the final contingent coupon, unless either fund finishes below its 70% barrier 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 ETF and Technology Select Sector SPDR fund
|
| Amount: | $3,757,000
|
| Maturity: | June 29, 2021
|
| Coupon: | 9.25%, payable semiannually if each fund closes at or above coupon trigger on related observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless either fund finishes below barrier price, in which case full exposure to loss of worse performing fund
|
| Call option: | At par on any semiannual call date from Dec. 19, 2018 to Dec. 29, 2020
|
| Initial prices: | $99.08 for Biotech and $70.80 for Technology Select
|
| Coupon triggers: | $69.356 for Biotech and $49.56 for Technology Select; 70% of initial prices
|
| Barrier prices: | $69.356 for Biotech and $49.56 for Technology Select; 70% of initial prices
|
| Pricing date: | June 22
|
| Settlement date: | June 29
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
| Cusip: | 40435FC39
|
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