By Emma Trincal
New York, March 21 – HSBC USA Inc. priced $525,000 of autocallable contingent income barrier notes due March 18, 2025 linked to the common stocks of United Airlines Holdings, Inc. and American Airlines Group 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 18% if each stock closes at or above the coupon trigger level, 60% of its initial level, on the observation date for that month. Payments will include any previously unpaid coupons for prior months.
The notes will be called at par plus the coupon if each stock closes at or above its initial level on any monthly call observation date after three months.
At maturity, if the notes are not called and the least-performing stock finishes at or above its 60% coupon trigger, the payout will be par plus the final coupon. If the least-performing stock declines by more than 40% but less than 50%, the payout will be par. If it declines by more than 50%, investors will lose 1% for each 1% decline 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 stocks: | United Airlines Holdings, Inc. and American Airlines Group Inc.
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| Amount: | $525,000
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| Maturity: | March 18, 2025
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| Coupon: | 18% per year, payable monthly if each stock closes at or above coupon trigger level on the observation date for that month
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| Price: | Par
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| Payout at maturity: | Par plus final coupon if each stock finishes at or above coupon trigger, par if each stock finishes at or above barrier level; otherwise, 1% loss for each 1% decline of the least-performing stock from initial level
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| Call: | At par plus coupon if each stock closes at or above its initial level on any monthly call observation date after three months
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| Initial levels: | $15.57 for American Airlines, $38.24 for United Airlines
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| Coupon trigger levels: | $9.342 for American Airlines, $22.944 for United Airlines; 60% of initial levels
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| Barrier levels: | $7.785 for American Airlines, $19.12 for United Airlines; 50% of initial levels
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| Pricing date: | March 15
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| Settlement date: | March 18
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.5%
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| Cusip: | 40439JJ63
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