By Sarah Lizee
Olympia, Wash., April 30 – HSBC USA Inc. priced $6.56 million of autocallable contingent income barrier notes due May 1, 2023 linked to the common stocks of JPMorgan Chase & Co., Apple, Inc. and McDonald's Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 14.25% if each stock closes at or above the coupon trigger level, 60% of its initial level, on the observation date for that month.
The notes will be called at par plus the coupon if each stock closes at or above its initial level on any monthly call observation date after six months.
If the notes are not called and each stock finishes at or above its 60% 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.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | JPMorgan Chase & Co., Apple, Inc. and McDonald's Corp.
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| Amount: | $6,562,000
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| Maturity: | May 1, 2023
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| Coupon: | 14.25% per year, payable monthly if each stock closes at or above coupon trigger level on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above barrier, par plus any final coupon; otherwise, 1% loss for each 1% decline of the least-performing stock from initial level
|
| Call: | At par plus coupon if each stock closes at or above its initial level on any monthly call observation date after six months
|
| Initial levels: | $90.71 for JPMorgan, $282.97 for Apple and $184.02 for McDonald’s
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| Coupon trigger levels: | 60% of initial levels
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| Barrier levels: | 60% of initial levels
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| Pricing date: | April 24
|
| Settlement date: | April 29
|
| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.25%
|
| Cusip: | 40438CDW8
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