By Kiku Steinfeld
Chicago, Oct. 19 – HSBC USA Inc. priced $764,000 of autocallable contingent income barrier notes due Aug. 1, 2022 linked to the common stock of Peloton Interactive Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a 19% contingent coupon if the stock closes at or above the coupon trigger level, 70% of the initial share price, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial share price on any coupon observation date after six months.
The payout at maturity will be par unless the stock finishes below its 70% barrier price, in which case investors will be fully exposed to the decline in the stock, payable in shares or cash at the issuer’s option.
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: | Peloton Interactive Inc.
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| Amount: | $764,000
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| Maturity: | Aug. 1, 2022
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| Coupon: | 19%, payable quarterly if the stock closes at or above coupon trigger level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless stock closes below barrier price; in which case full exposure to losses, payable in shares or cash at the issuer’s option
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| Call: | At par plus coupon if the stock closes at or above initial price on any quarterly observation date after six months
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| Initial price: | $121.36
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| Coupon trigger/barrier price: | $84.952, 70% of initial price
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| Pricing date: | July 27
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| Settlement date: | July 30
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.75%
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| Cusip: | 40428HQQ8
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