By Kiku Steinfeld
Chicago, June 23 – HSBC USA Inc. priced $1.7 million of 0% barrier participation notes with call feature due May 28, 2024 linked to the least performing of the stocks of Chevron Corp., Marathon Petroleum Corp. and Valero Energy Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus 44.5% if each stock closes at or 110% of its initial price on May 25, 2022.
If the notes are not called and each stock finishes at or above its initial level, the payout at maturity will be par plus double the return of the least performing stock.
If any stock falls but each stock finishes at or above its 50% barrier level, the payout will be par.
Otherwise, investors will be fully exposed to the decline of the least performing stock, payable in shares of that stock with fractional shares paid in cash.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Barrier participation notes with call feature
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| Underlying assets: | Chevron Corp., Marathon Petroleum Corp. and Valero Energy Corp.
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| Amount: | $1,695,000
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| Maturity: | May 28, 2024
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par plus double return of least performing stock if each stock finishes at or above its initial level; par if least performer falls by up to barrier level; otherwise, full exposure to decline of least performer, payable in shares of that stock with fractional shares paid in cash
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| Call: | Automatically at par plus 44.5% if each stock closes at or above 110% of its initial price on May 25, 2022
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| Initial levels: | $103.56 for Chevron, $59.67 for Marathon, $76.99 for Valero
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| Barrier levels: | 50% of initial levels
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| Pricing date: | May 20
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| Settlement date: | May 25
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40428HQH8
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