By Wendy Van Sickle
Columbus, Ohio, Sept. 1 – HSBC USA Inc. priced $2 million of autocallable contingent income barrier notes due June 23, 2023 linked to the performance of Luminar Technologies, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 20.5% if the stock closes at or above the coupon trigger level, 60% of the initial share price, on the relevant observation date.
The notes will be called at par plus the contingent coupon if the stock closes at or above 80% of its initial share price on any monthly observation date after three months.
The payout at maturity will be par plus the final coupon, if any, unless the stock finishes below its 50% barrier price, in which case investors will be fully exposed to the decline in the 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 stock: | Luminar Technologies, Inc.
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| Amount: | $2 million
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| Maturity: | June 23, 2023
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| Coupon: | 20.5%, payable monthly if the stock closes at or above coupon trigger level on the relevant observation date
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| Price: | Par
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| Payout at maturity: | Par plus final coupon unless stock closes below barrier price; in which case full exposure to losses
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| Call: | At par plus coupon if the stock closes at or above 80% of initial price on any monthly observation date after three months
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| Initial price: | $23.41
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| Coupon trigger: | $14.046; 60% of initial price
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| Barrier price: | $11.705; 50% of initial price
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| Pricing date: | June 18
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| Settlement date: | June 23
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.25%
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| Cusip: | 40439JDN2
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