By Wendy Van Sickle
Columbus, Ohio, March 20 – HSBC USA Inc. priced $1.68 million of autocallable contingent income barrier notes due April 17, 2024 linked to the performance of Alphabet 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 11% if the stock closes at or above the coupon trigger level, 70% of the initial share price, 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 monthly observation date after six months.
The payout at maturity will be par plus a final coupon unless the stock finishes below its 70% barrier price, in which case investors will be fully exposed to the losses of the stock.
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 stock: | Alphabet Inc.
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| Amount: | $1.68 million
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| Maturity: | April 17, 2024
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| Coupon: | 11%, payable monthly 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; otherwise, full exposure to losses of stock
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| Call: | At par plus coupon if the stock closes at or above initial price on any monthly observation date after six months
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| Initial price: | $94.25
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| Coupon trigger level: | $65.975, 70% of initial price
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| Barrier level: | $65.975, 70% of initial price
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| Pricing date: | March 14
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| Settlement date: | March 17
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40428HVK5
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