By Wendy Van Sickle
Columbus, Ohio, June 16 – HSBC USA Inc. priced $1.3 million of autocallable contingent income barrier notes with memory coupon due May 20, 2022 linked to the least performing of the common stocks of Netflix Inc., Tesla, Inc. and Peloton Interactive, 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 25% if each stock closes at or above its coupon trigger level, 60% of its initial level, on the observation date for that period, plus any previously unpaid coupon.
The notes will be called at par plus the coupon if each stock closes at or above its initial level on any quarterly call observation date.
If the notes are not called and each stock finishes at or above its 60% barrier value, the payout at maturity will be par plus any final coupon. Otherwise, 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 with memory coupon
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| Underlying stocks: | Netflix Inc., Tesla, Inc. and Peloton Interactive, Inc.
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| Amount: | $1.3 million
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| Maturity: | May 20, 2022
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| Coupon: | 25% per year, payable quarterly if each stock closes at or above coupon trigger on observation date for that period, plus any previously unpaid coupon
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par plus any final coupon; otherwise, full exposure to decline of least-performing stock
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| Call: | At par plus coupon if each stock closes at or above initial level on any quarterly call observation date
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| Initial levels: | $488.94 for Netflix, $576.83 for Tesla and $92.29 | for Peloton
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| Coupon triggers: | 60% of initial levels
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| Barrier levels: | 60% of initial levels
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| Pricing date: | May 17
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| Settlement date: | May 20
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1%
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| Cusip: | 40439JAW5
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