By William Gullotti
Buffalo, N.Y., July 27 – HSBC USA Inc. priced $1.22 million of callable notes with contingent return due March 29, 2023 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 if the stock closes at or above the 70% coupon trigger level on the related observation date. If payable, the coupon will be the equivalent of 11.65% per annum for the first two payment dates and will be the equivalent of 7.7668% per annum for the final.
HSBC may call the notes on any quarterly coupon payment date after six months.
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 lose 1% for every 1% decline from initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable notes with contingent return
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| Underlying stock: | Walgreens Boots Alliance, Inc.
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| Amount: | $1,224,000
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| Maturity: | March 29, 2023
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| Coupon: | Payable quarterly if each asset closes at or above coupon trigger on related observation date; first two payment dates will be payable at the equivalent of 11.65% per annum and the final will be payable at the equivalent of 7.7668% per annum
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless the stock finishes below barrier value, in which case investors will be fully exposed to the stock’s decline from its initial level
|
| Call option: | At par on any quarterly coupon payment date after six months
|
| Initial level: | $38.66
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| Coupon trigger: | $27.062; 70% of initial value
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| Barrier value: | $27.062; 70% of initial value
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| Pricing date: | July 22
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| Settlement date: | July 27
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.5%
|
| Cusip: | 40441XEM8
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