By Wendy Van Sickle
Columbus, Ohio, July 12 – HSBC USA Inc. priced $25 million of trigger autocallable contingent yield notes due July 10, 2026 linked to the least performing of the SPDR S&P 500 ETF Trust and the SPDR S&P Biotech ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at the rate of 7.89% per year if each ETF closes at or above its coupon barrier, 70% of its initial level, on the related observation date.
The notes will be automatically called at par plus coupon if the shares of each ETF close at or above its initial share price on any quarterly call observation date after six months.
If the notes are not called and the final share price of each ETF is greater than or equal to the downside threshold level, 70% of the initial share price, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price of the least performing ETF is less than its initial share price.
HSBC Securities (USA) Inc. is the underwriter, and UBS Financial Services Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying ETFs: | SPDR S&P 500 ETF Trust, SPDR S&P Biotech ETF
|
| Amount: | $24,995,810
|
| Maturity: | July 10, 2026
|
| Coupon: | 7.89% per year, paid quarterly, if each ETF closes at or above its coupon barrier on any related observation date
|
| Price: | Par of $10
|
| Payout at maturity: | Par unless any ETF finishes below downside threshold level, in which case 1% loss for each 1% decline of laggard ETF from initial level
|
| Call: | Automatically at par plus coupon if each ETF closes at or above initial level on any quarterly call observation date after six months
|
| Initial levels: | $434.46 for S&P 500 ETF, $131.35 for Biotech
|
| Coupon barrier levels: | $304.122 for S&P 500 ETF, $91.945 for Biotech; 70% of initial levels
|
| Downside thresholds: | $304.122 for S&P 500 ETF, $91.945 for Biotech; 70% of initial levels
|
| Pricing date: | July 7
|
| Settlement date: | July 12
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agent: | UBS Financial Services Inc.
|
| Fees: | 2.25%
|
| Cusip: | 40439K730
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
