By Sarah Lizee
Olympia, Wash., May 22 – HSBC USA Inc. priced $91,000 of autocallable contingent income barrier notes due May 22, 2023 linked to the least performing of the common stocks of Bank of America Corp., Salesforce.com, Inc. and NIKE, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annual rate of 14% if each stock closes at or above its coupon trigger price, 52.5% of the initial share price, on the observation date for that month.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date starting in November.
If the notes are not called, the payout at maturity will be par unless any stock finishes below its 52.5% trigger level, in which case investors will be fully exposed to the decline of the least performing stock.
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: | Bank of America Corp., Salesforce.com, Inc. and NIKE, Inc.
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Amount: | $91,000
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Maturity: | May 22, 2023
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Coupon: | Each month, 14% per year if stocks close at or above coupon trigger price on observation date
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Price: | Par
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Payout at maturity: | If stocks finish at or above trigger price, par; otherwise, full exposure to decline of least performing stock
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Call: | Automatically at par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date starting in November
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Initial share prices: | $22.21 for BofA, $176.04 for Salesforce and $91.51 for NIKE
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Coupon trigger: | 52.5% of initial prices
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Trigger prices: | 52.5% of initial prices
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Pricing date: | May 19
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Settlement date: | May 22
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.25%
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Cusip: | 40438CHA2
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