By Marisa Wong
Morgantown, W.Va., July 5 – HSBC USA Inc. priced $2.13 million of autocallable barrier notes with contingent return due June 27, 2022 linked to the lesser performing of the SPDR S&P Bank exchange-traded fund and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.
If each ETF closes at or above its initial price on any annual call observation date, the notes will be automatically called at par plus a call premium of 10% per year.
If the notes are not called and the least performing ETF falls by no more than 30%, the payout will be par plus 10%. If the least performing ETF falls by more than 30%, investors will be fully exposed to the decline of that ETF.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable barrier notes with contingent return
|
| Underlying ETFs: | SPDR S&P Bank ETF and the iShares MSCI Emerging Markets ETF
|
| Amount: | $2,134,000
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| Maturity: | June 27, 2022
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| Coupon: | 0%
|
| Price: | Par
|
| Call: | If each ETF closes at or above its initial price on any annual call observation date, automatically at par plus a call premium of 10% per year
|
| Payout at maturity: | If the notes are not called and the least performing ETF falls by no more than 30%, par plus 10%; otherwise, full exposure to decline of least performing ETF
|
| Initial prices: | $49.09 for Bank ETF and $43.92 for EM ETF
|
| Barrier prices: | $34.363 for Bank ETF and $30.744 for EM ETF; 70% of initial prices
|
| Pricing date: | June 22
|
| Settlement date: | June 27
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| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.25%
|
| Cusip: | 40435FH26
|
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