By William Gullotti
Buffalo, N.Y., May 20 – HSBC USA Inc. priced $2.73 million of autocallable contingent income barrier notes with guaranteed coupon period due May 18, 2027 linked to the performance of Advanced Micro Devices, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly coupon at an annualized rate of 10.7% for the first two years.
Starting Aug. 14, 2024, the coupon becomes a contingent quarterly coupon at the same rate, payable if the stock closes at or above the 50% coupon trigger level on the relevant observation date.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial share price on any quarterly observation date starting Aug. 14, 2024.
The payout at maturity will be par plus the final coupon 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 with guaranteed coupon period
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| Underlying stock: | Advanced Micro Devices, Inc.
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| Amount: | $2.73 million
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| Maturity: | May 18, 2027
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| Coupon: | 10.7% per annum, payable quarterly for first two years, then 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 finishes 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 initial price on any quarterly observation date starting Aug. 14, 2024
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| Initial price: | $95.12
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| Coupon trigger/barrier price: | $47.56; 50% of initial price
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| Pricing date: | May 13
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| Settlement date: | May 18
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.35%
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| Cusip: | 40439J4R3
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