By Sarah Lizee
Olympia, Wash., Feb. 28 – HSBC USA Inc. priced $1.02 million of autocallable contingent income barrier notes with memory coupon due Feb. 27, 2023 linked to the common stock of Advanced Micro Devices, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay an 11.2% contingent coupon if the stock closes at or above the coupon trigger level, 50% of the initial share price, on the observation date for that quarter, in which case the notes will pay any previously unpaid coupons as well.
The notes will be called at par plus the contingent coupon and any previously unpaid coupons if the stock closes at or above the initial share price on any coupon observation date beginning Aug. 24.
The payout at maturity will be par plus the final coupon and any previously unpaid coupons unless the stock finishes below its 50% barrier price, in which case investors will be fully exposed to the decline in the stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes with memory coupon
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| Underlying stock: | Advanced Micro Devices, Inc.
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| Amount: | $1,016,000
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| Maturity: | Feb. 27, 2023
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| Coupon: | 11.2%, payable quarterly if the stock closes at or above coupon trigger level on observation date for that quarter, in which case the notes will pay any previously unpaid coupons as well
|
| Price: | Par
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| Payout at maturity: | Par pus final coupon and any previously unpaid coupons unless stock closes below barrier price; in which case full exposure to losses
|
| Call: | At par plus coupon and any previously unpaid coupons if the stock closes at or above initial price on any quarterly observation date beginning Aug. 24
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| Initial price: | $53.28
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| Coupon trigger/barrier price: | $26.64, 50% of initial price
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| Pricing date: | Feb. 21
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| Settlement date: | Feb. 26
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40435U6P4
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