Chicago, April 21 – HSBC USA Inc. priced $3 million of autocallable contingent income barrier notes due March 31, 2023 linked to the common stocks of Procter & Gamble Co. and Kimberly-Clark Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 9.5% if each stock closes at or above the coupon trigger level, 60% of the initial level, on the observation date for that quarter.
The notes will be called at par plus the coupon if each stock closes at or above the initial price on any quarterly observation date.
If the notes are not called and each stock finishes at or above the 60% barrier level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% decline of the least-performing stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable contingent income barrier notes
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Underlying stocks: | Procter & Gamble Co. and Kimberly-Clark Corp.
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Amount: | $3,000,000
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Maturity: | March 31, 2023
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Coupon: | 9.5%, payable quarterly if each stock closes at or above coupon trigger level on observation date for that quarter
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Price: | Par
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Payout at maturity: | If each stock finishes at or above barrier level, par plus the final coupon; otherwise, 1% loss for each 1% decline of the least-performing stock from initial level
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Call: | At par plus coupon if each stock closes at or above initial price on any quarterly observation date
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Initial levels: | $110.17 for Procter & Gamble and $124.89 for Kimberly-Clark
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Coupon trigger levels: | $66.102 for Procter & Gamble and $74.934 for Kimberly-Clark, 60% of initial prices
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Barrier levels: | $66.102 for Procter & Gamble and $74.934 for Kimberly-Clark, 60% of initial prices
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Pricing date: | March 27
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Settlement date: | March 31
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.5%
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Cusip: | 40438CCN9
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