By William Gullotti
Buffalo, N.Y., April 27 – HSBC USA Inc. priced $1.24 million of callable notes with contingent return due April 25, 2024 linked to the performance Walgreens Boots Alliance Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.75% if the stock closes at or above the 70% coupon trigger level on the related observation date.
HSBC may call the notes on any quarterly coupon payment date.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below its 70% barrier level, in which case investors will receive a number of shares equal to $1,000 divided by the stock’s initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable notes with contingent return
|
| Underlying stock: | Walgreens Boots Alliance Inc.
|
| Amount: | $1,243,000
|
| Maturity: | April 25, 2024
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| Coupon: | 11.75%, payable quarterly if each asset closes at or above coupon trigger on related observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless the stock finishes below barrier value, in which case investors will receive number of shares equal to $1,000 divided by the stock’s initial share price
|
| Call option: | At par on any quarterly coupon payment date
|
| Initial level: | $45.54
|
| Coupon trigger: | $31.878; 70% of initial values
|
| Barrier value: | $31.878; 70% of initial values
|
| Pricing date: | April 22
|
| Settlement date: | April 27
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1%
|
| Cusip: | 40439NAC0
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