Chicago, March 31 – HSBC USA Inc. priced $850,000 of autocallable contingent income barrier notes due March 31, 2025 linked to the performance of Freeport-McMoRan 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 18.95% if the stock closes at or above the coupon trigger level, 70% of the initial share price, on the relevant observation date.
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 the final coupon unless the stock finishes below its 70% barrier price, in which case investors will be fully exposed to the decline in the stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stock: | Freeport-McMoRan Inc.
|
| Amount: | $850,000
|
| Maturity: | March 31, 2025
|
| Coupon: | 18.95%, payable quarterly if the stock closes at or above coupon trigger level on the relevant observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon unless stock finishes below barrier price; in which case full exposure to losses
|
| Call: | At par plus coupon if the stock closes at or above initial price on any quarterly observation date
|
| Initial price: | $50.27
|
| Coupon trigger/barrier price: | $35.189; 70% of initial price
|
| Pricing date: | March 28
|
| Settlement date: | March 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.35%
|
| Cusip: | 40439JL86
|
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