By William Gullotti
Buffalo, N.Y., June 15 – HSBC USA Inc. priced $1.75 million of 0% autocallable barrier notes with step-up premium due May 28, 2024 linked to the lesser performing of the common stocks of Johnson & Johnson and UnitedHealth Group Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an 11.35% annualized call premium if each stock closes at or above its initial level on any quarterly observation date after one year.
The payout will be par unless any stock finishes below its 60% barrier level, in which case 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 barrier notes with step-up premium
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| Underlying stocks: | Johnson & Johnson and UnitedHealth Group Inc.
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| Amount: | $1.75 million
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| Maturity: | May 28, 2024
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par unless either stock finishes below barrier level, in which case investors will lose 1% for each 1% decline of least-performing stock from its initial level
|
| Call: | At par plus 11.35% annualized premium if each stock closes at or above its initial level on any quarterly observation date after one year
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| Initial levels: | $171.07 for J&J, $408.64 for UnitedHealth
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| Barrier levels: | $102.642 for J&J, $245.184 for UnitedHealth; 60% of initial levels
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| Pricing date: | May 20
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| Settlement date: | May 25
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.25%
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| Cusip: | 40439JAZ8
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