By Susanna Moon
Chicago, Sept. 4 – HSBC USA Inc. priced $2.87 million of callable barrier notes with contingent return due Aug. 18, 2021 linked to the lesser performing of the SPDR S&P Biotech ETF 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 annualized rate of 10.5% if each underlying fund closes at or above its 70% coupon barrier on the observation date for that period.
The notes are callable at par on any review date after six months.
The payout at maturity will be par unless either fund finishes below its 70% trigger level, in which case investors will be fully exposed to any losses of the worse performing fund.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable notes with contingent return
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| Underlying assets: | SPDR S&P Biotech ETF and Technology Select Sector SPDR Fund
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| Amount: | $2,572,000
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| Maturity: | Aug. 18, 2021
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| Coupon: | 10.5% annualized, payable semiannually if each fund closes at or above its 70% coupon barrier on the observation date for that period
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| Price: | Par
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| Payout at maturity: | Par unless either asset falls below 70% trigger, in which case full exposure to any losses of worse performing fund
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| Call option: | At par on any review date beginning Feb. 13, 2019
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| Initial levels: | $96.40 for biotech fund and $74.28 for tech fund
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| Trigger levels: | $67.48 for biotech fund and $51.996 for tech fund, 70% of initial levels
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| Pricing date: | Aug. 24
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| Settlement date: | Aug. 31
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40435FR66
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