By Kiku Steinfeld
Chicago, Jan. 20 – HSBC USA Inc. priced $7.25 million of autocallable contingent income barrier notes due Jan. 23, 2023 linked to the least performing of the common stocks of American Tower Corp. and Broadcom Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 11.25% if each stock closes at or above its coupon trigger price, 60% of the initial share price, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date after six months.
If the notes are not called, the payout at maturity will be par plus the final coupon unless either stock finishes below its 60% trigger level, in which case 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
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| Underlying stocks: | American Tower Corp. and Broadcom Inc.
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| Amount: | $7,250,000
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| Maturity: | Jan. 23, 2023
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| Coupon: | Each quarter, 11.25% per year if stocks close at or above trigger price on observation date
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| Price: | Par
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| Payout at maturity: | If stocks finish at or above trigger price, par plus final coupon; otherwise, full exposure to decline of least performing stock
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| Call: | Automatically at par plus final coupon if stocks close at or above initial share price on any coupon observation date after six months
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| Initial share prices: | $235.38 for American Tower, $303.14 for Broadcom
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| Coupon trigger/trigger prices: | $141.228 for American Tower, $181.884 for Broadcom, 60% of initial share price
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| Pricing date: | Jan. 15
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| Settlement date: | Jan. 21
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40435U2H6
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