By William Gullotti
Buffalo, N.Y., May 31 – HSBC USA Inc. priced $1.85 million of autocallable contingent income barrier notes with guaranteed coupon period due May 26, 2027 linked to the least performing of the stocks of Caterpillar Inc. and Deere & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly 9.3% annualized coupon for the first two years. After that, the coupon rate will remain the same but become payable only if each stock closes at or above its coupon trigger level, 55% of its initial level, on the observation date for that period.
The notes will be called at par plus the coupon if each stock closes at or above its initial level on any quarterly call observation date after one year.
If the notes are not called and each stock finishes at or above its 55% barrier value, the payout at maturity will be par plus the final coupon. Otherwise, investors will be fully exposed to the decline of the least-performing 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 stocks: | Caterpillar Inc., Deere & Co.
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| Amount: | $1.85 million
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| Maturity: | May 26, 2027
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| Coupon: | 9.3% per year; quarterly guaranteed payments for first two years; then, payable quarterly if each stock closes at or above coupon trigger on observation date for that period
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par plus final coupon; otherwise, full exposure to decline of least-performing stock from its initial level
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| Call: | At par plus coupon if each stock closes at or above initial level on any quarterly call observation date after one year
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| Initial levels: | $204.15 for Caterpillar, $335.36 for Deere
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| Coupon triggers: | $112.2825 for Caterpillar, $184.448 for Deere; 55% of initial levels
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| Barrier levels: | $112.2825 for Caterpillar, $184.448 for Deere; 55% of initial levels
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| Pricing date: | May 23
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| Settlement date: | May 26
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.35%
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| Cusip: | 40439J5S0
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