By Wendy Van Sickle
Columbus, Ohio, Jan. 19 – HSBC USA Inc. priced $725,000 of callable notes with contingent return due Aug. 31, 2023 linked to the shares of Autodesk, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.25% if the stock closes at or above the 75% coupon trigger level on the related observation date.
HSBC may call the notes on any quarterly coupon payment date.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below its 75% barrier level, in which case investors will be fully exposed to any losses of the stock.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Callable notes with contingent return
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Underlying shares: | Autodesk, Inc.
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Amount: | $725,000
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Maturity: | Aug. 31, 2023
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Coupon: | 11.25%, payable quarterly if the stock closes at or above coupon trigger on related observation date
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Price: | Par
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Payout at maturity: | Par plus contingent coupon unless the stock finishes below barrier value, in which case full exposure to loss
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Call option: | At par on any quarterly coupon payment date
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Initial value: | $315.64
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Coupon trigger: | $236.73; 75% of initial value
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Barrier value: | $236.73; 75% of initial value
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Pricing date: | Aug. 27
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Settlement date: | Sept. 1
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1%
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Cusip: | 40428HQU9
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