By Wendy Van Sickle
Columbus, Ohio, June 1 – HSBC USA Inc. priced $3.31 million of 8.69% autocallable yield notes due July 1, 2024 linked to the common stock of Microsoft Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
After six months, the notes will be called at par plus the interest payment if the stock closes at or above its initial level on any monthly review date.
The payout at maturity will be par plus the final interest payment unless the stock finishes below its 75% trigger level, in which case investors will lose 1% for each 1% decline of the stock from its initial level, payable in shares.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying stock: | Microsoft Corp.
|
| Amount: | $3,305,000
|
| Maturity: | July 1, 2024
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| Coupon: | 8.69%, payable monthly
|
| Price: | Par
|
| Call: | Automatically at par plus coupon if stock closes at or above initial level on a monthly observation date after six months
|
| Payout at maturity: | Par plus final coupon unless stock finishes below its trigger level, in which case full exposure to decline of stock, payable in shares
|
| Initial level: | $325.92
|
| Trigger level: | $244.44, 75% of initial levels
|
| Pricing date: | May 25
|
| Settlement date: | May 31
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40428HWS7
|
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