By William Gullotti
Buffalo, N.Y., July 31 – HSBC USA Inc. priced $2.6 million of autocallable contingent income barrier notes with memory coupon due July 20, 2026 linked to the performance of Micron Technology, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 10.65% if the stock closes at or above the coupon trigger level, 50% of the initial share price, on the relevant observation date. Previously unpaid coupons, if any, will be automatically included whenever a contingent coupon is paid.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial share price on any quarterly observation date after six months.
The payout at maturity will be par plus all unpaid coupons unless the stock finishes below its 50% barrier price, in which case investors will lose 1% for every 1% that the final share price is less than the initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes with memory coupon
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| Underlying stock: | Micron Technology, Inc.
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| Amount: | $2,599,000
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| Maturity: | July 20, 2026
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| Coupon: | 10.65%, payable quarterly if the stock closes at or above coupon trigger level on the relevant observation date; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
|
| Payout at maturity: | Par plus all unpaid coupons unless stock finishes below barrier price, in which case investors will be fully exposed to the stock’s decline from its initial price
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| Call: | At par plus coupon if the stock closes at or above initial price on any quarterly observation date after six months
|
| Initial price: | $64.08
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| Coupon trigger/barrier price: | $32.04; 50% of initial price
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| Pricing date: | July 14
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| Settlement date: | July 19
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40447AFE9
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