Chicago, Feb. 9 – HSBC USA Inc. priced $1 million of autocallable contingent income barrier notes due April 22, 2024 linked to the performance of 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 an annualized rate of 7.75% if the ETF closes at or above the coupon trigger level, 75% of the initial share price, on the relevant observation date.
The notes will be called at par plus the contingent coupon if the ETF closes at or above the initial share price on any quarterly observation date after one year.
The payout at maturity will be par plus the final coupon unless the ETF finishes below its 75% barrier price, in which case investors will be fully exposed to the decline in the ETF from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying ETF: | SPDR S&P Biotech ETF
|
| Amount: | $1,000,000
|
| Maturity: | April 22, 2024
|
| Coupon: | 7.75%, payable quarterly if the ETF closes at or above coupon trigger level on the relevant observation date
|
| Price: | Par
|
| Payout at maturity: | Par pus final coupon unless ETF closes below barrier price; in which case full exposure to losses
|
| Call: | At par plus coupon if the ETF closes at or above initial price on any quarterly observation date after one year
|
| Initial price: | $128.72
|
| Coupon trigger/barrier price: | $96.54, 75% of initial price
|
| Pricing date: | April 19
|
| Settlement date: | April 22
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.85%
|
| Cusip: | 40438C5Z0
|
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