By Kiku Steinfeld
Chicago, Nov. 17 – HSBC USA Inc. priced $525,000 of autocallable contingent income barrier notes with memory coupon due March 18, 2025 linked to the least performing of 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 its coupon trigger level, 60% of its initial level, on the observation date for that period. Any previously unpaid coupons will also be paid.
The notes will be called at par if each stock closes at or above 80% of its initial level on any monthly call observation date after three months.
If the notes are not called and each stock finishes at or above its 50% barrier value, the payout at maturity will be par. Otherwise, investors will be fully exposed to the decline of the least-performing stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes with memory coupon
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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 on observation date for that period; previously unpaid coupons will also be paid
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par; otherwise, full exposure to decline of least-performing stock
|
| Call: | At par if each stock closes at or above 80% of its initial level on any monthly call observation date after three months
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| Initial levels: | $38.24 for United, $15.57 for American
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| Coupon triggers: | $22.944 for United, $9.342 for American; 60% of initial levels
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| Barrier levels: | $19.12 for United, $7.785 for American; 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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