By Taylor Fox
New York, Feb. 8 – HSBC USA Inc. priced $1.08 million of autocallable contingent income barrier notes with memory coupon due Jan. 9, 2023 linked to the common stocks of Kohl’s Corp., Lowe’s Cos., Inc. and Walmart 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 16.75% if each stock closes at or above the coupon trigger level, 60% of its initial level, on the observation date for that period. Previously unpaid coupons will also be paid.
The notes will be called at par plus the coupon if each stock closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and each stock finishes at or above its 50% barrier, the payout at maturity will be par plus any final coupon. Otherwise, investors will lose 1% for each 1% decline of the least-performing stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes with memory coupon
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| Underlying stocks: | Kohl’s Corp., Lowe’s Cos., Inc. and Walmart Inc.
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| Amount: | $1,075,000
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| Maturity: | Jan. 9, 2023
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| Coupon: | 16.75% per year, payable quarterly if each stock closes at or above coupon trigger level on observation date for that period; previously unpaid coupons will also be paid
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier, par plus any final coupon(s); otherwise, 1% loss for each 1% decline of the least-performing stock from initial level
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| Call: | At par plus coupon if each stock closes at or above its initial level on any quarterly call observation date after six months
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| Initial levels: | $39.49 for Kohl’s, $160.92 for Lowe’s, $145.75 for Walmart
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| Coupon trigger levels: | 60% of initial levels
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| Barrier levels: | 50% of initial levels
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| Pricing date: | Jan. 5
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| Settlement date: | Jan. 11
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.25%
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| Cusip: | 40438CR45
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