By Marisa Wong
Los Angeles, Aug. 5 – HSBC USA Inc. priced $919,000 of callable notes with contingent return due July 26, 2022 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 9.6% if each fund closes at or above the 60% coupon trigger level on the related observation date.
HSBC may call the notes on any semiannual coupon payment date.
The payout at maturity will be par plus the final contingent coupon unless either fund finishes below its 60% 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.
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| Issue: | Callable notes with contingent return
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| Underlying funds: | SPDR S&P Biotech ETF and Technology Select Sector SPDR fund
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| Amount: | $919,000
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| Maturity: | July 26, 2022
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| Coupon: | 9.6%, payable semiannually if each fund closes at or above coupon trigger on related observation date
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless either fund finishes below barrier value, in which case full exposure to losses of worse performing fund
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| Call option: | At par on any semiannual coupon payment date
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| Initial values: | $85.61 for biotech ETF and $80.69 for tech ETF
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| Coupon triggers: | $51.366 for biotech ETF and $48.414 for tech ETF; 60% of initial values
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| Barrier values: | $51.366 for biotech ETF and $48.414 for tech ETF; 60% of initial values
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| Pricing date: | July 19
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| Settlement date: | July 26
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40435UQZ0
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