By Kiku Steinfeld
Chicago, Jan. 29 – HSBC USA Inc. priced $533,000 of autocallable contingent income barrier notes due Jan. 22, 2024 linked to the least performing of the common stocks of Visa Inc., Southwest Airlines Co. and JD.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annual rate of 11.3% if each stock closes at or above its coupon trigger price, 55% of the initial share price, on the observation date for that month.
The notes will be called at par plus the contingent coupon if each stock closes at or above 95% of its initial share price on any quarterly call date after six months.
If the notes are not called, the payout at maturity will be par unless any stock finishes below its 55% 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: | Visa Inc., Southwest Airlines Co. and JD.com, Inc.
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| Amount: | $533,000
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| Maturity: | Jan. 22, 2024
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| Coupon: | Each month, 11.3% per year if stocks close at or above coupon trigger price on monthly observation date
|
| Price: | Par
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| Payout at maturity: | If all stocks finish at or above trigger price, par; otherwise, full exposure to decline of least performing stock
|
| Call: | Automatically at par plus the contingent coupon if each stock closes at or above 95% of its initial share price on any coupon observation date on any quarterly call date after six months
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| Initial share prices: | $201.59 for Visa, $46.66 for Southwest and $87.77 for JD
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| Coupon trigger: | $110.8745 for Visa, $25.663 for Southwest and $48.2735 for JD; 55% of initial prices
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| Trigger prices: | 55% of initial prices
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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: | 3.25%
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| Cusip: | 40438CR86
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