By Kiku Steinfeld
Chicago, March 9 – HSBC USA Inc. priced $2.65 million of autocallable contingent income barrier notes with memory coupon due Jan. 31, 2023 linked to the common stocks of Caterpillar Inc. and Deere & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon plus any previously unpaid coupons at an annualized rate of 9.7% if each stock closes at or above the coupon trigger level, 65% of the initial level, on the observation date for that quarter.
The notes will be called at par plus the coupon and any previously unpaid coupons if each stock closes at or above the initial price on any quarterly observation date other than the final one.
If the notes are not called and each stock finishes at or above the 65% barrier level, the payout at maturity will be par plus the 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: | Caterpillar Inc. and Deere & Co.
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| Amount: | $2,645,000
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| Maturity: | Jan. 31, 2023
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| Coupon: | 9.7% plus any previously unpaid coupons, payable quarterly if each stock closes at or above coupon trigger level on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par plus final coupon; otherwise, 1% loss for each 1% decline of least-performing stock from initial level
|
| Call: | At par plus coupon and any previously unpaid coupons if each stock closes at or above initial price on any quarterly observation date other than final one
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| Initial levels: | $135.78 for Caterpillar and $160.16 for Deere
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| Coupon trigger/barrier levels: | $88.257 for Caterpillar and $104.104 for Deere, 65% of initial prices
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| Pricing date: | Jan. 29
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| Settlement date: | Jan. 31
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.35%
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| Cusip: | 40435U2U7
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