By Taylor Fox
New York, Dec. 21 – HSBC USA Inc. priced $2.75 million of autocallable contingent income barrier notes due Dec. 18, 2025 linked to the common stock of Advanced Micro Devices, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 10% if the stock closes at or above the coupon trigger level, 50% of the initial price, on the observation date for that quarter.
The notes will be called at par plus the coupon if the stock closes at or above the initial price on any quarterly observation date starting after one year.
If the notes are not called and the stock finishes at or above the 50% barrier level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% decline of the stock from its initial price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stock: | Advanced Micro Devices, Inc.
|
| Amount: | $2,750,000
|
| Maturity: | Dec. 18, 2025
|
| Coupon: | 10%, payable quarterly if the stock closes at or above coupon trigger level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If the stock finishes at or above barrier level, par plus the final coupon; otherwise, 1% loss for each 1% decline of the stock from initial price
|
| Call: | At par plus coupon if the stock closes at or above initial price on any quarterly observation date after one year
|
| Initial price: | $97.12
|
| Coupon barrier level: | 50% of initial level
|
| Trigger barrier level: | 50% of initial level
|
| Pricing date: | Dec. 15
|
| Settlement date: | Dec. 18
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.305%
|
| Cusip: | 40438CK67
|
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