By Wendy Van Sickle
Columbus, Ohio, Nov. 23 – HSBC USA Inc. priced $8.09 million of autocallable contingent income barrier notes due Nov. 17, 2022 linked to the least performing of the SPDR S&P Regional Banking ETF, the SPDR S&P Biotech ETF and the Technology Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 13.48% if each fund closes at or above its coupon trigger price, 70% of the initial share price, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each fund closes at or above 100% of its initial share price on any quarterly call date.
If the notes are not called, the payout at maturity will be par unless any fund finishes below its 70% trigger level, in which case investors will be fully exposed to the decline of the least performing fund.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying funds: | SPDR S&P Regional Banking ETF, SPDR S&P Biotech ETF and Technology Select Sector SPDR fund
|
| Amount: | $8,091,000
|
| Maturity: | Nov. 17, 2022
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| Coupon: | Each quarter, 13.48% per year if funds close at or above coupon trigger price on observation date
|
| Price: | Par
|
| Payout at maturity: | If all funds finish at or above trigger price, par; otherwise, full exposure to decline of least performing fund
|
| Call: | Automatically at par plus the contingent coupon if each fund closes at or above 100% of its initial share price on any coupon observation date on any quarterly call date
|
| Initial share prices: | $47.17 for Regional Banking, $125.04 for Biotech and $121.20 for Technology
|
| Coupon trigger: | 70% of initial prices
|
| Trigger prices: | 70% of initial prices
|
| Pricing date: | Nov. 13
|
| Settlement date: | Nov. 19
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.75%
|
| Cusip: | 40438CC33
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