Chicago, Feb. 22 – HSBC USA Inc. priced $1.4 million of callable notes with contingent return due March 29, 2023 linked to the performance Boeing Co. common stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent 12% quarterly coupon if the stock closes at or above the 60% coupon trigger level on the related observation date.
HSBC may call the notes at par on any quarterly coupon payment date after six months.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below its 60% barrier level, in which case investors will lose 1% for every 1% decline from initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Callable notes with contingent return
|
| Underlying stock: | Boeing Co.
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| Amount: | $1,402,000
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| Maturity: | March 29, 2023
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| Coupon: | 12% annual rate, payable quarterly if stock closes above coupon trigger level on related observation date
|
| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless the stock finishes below barrier value, in which case investors will be fully exposed to the stock’s decline from its initial level
|
| Call option: | At par on any quarterly coupon payment date after six months
|
| Initial level: | $153.58
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| Coupon trigger: | $92.148; 60% of initial value
|
| Barrier value: | $92.148; 60% of initial value
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| Pricing date: | May 3, 2022
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| Settlement date: | May 6, 2022
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| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.75%
|
| Cusip: | 40390LAB3
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