By Kiku Steinfeld
Chicago, March 16 – HSBC USA Inc. priced $2.92 million of autocallable contingent income barrier notes due March 4, 2024 linked to the iShares Global Clean Energy exchange-traded fund and the common stock of NIO Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If each asset closes at or above its coupon trigger, 60% of its initial price, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annual rate of 30%.
The notes will be called at par if each asset closes at or above 85% of its initial price on any quarterly observation date.
The payout at maturity will be par unless any asset finishes below the 60% barrier level, in which case investors will lose 1% for each 1% decline of the worst performing asset from its initial price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying assets: | iShares Global Clean Energy ETF and NIO Inc.
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| Amount: | $2,920,000
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| Maturity: | March 4, 2024
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| Coupon: | 30% annualized, payable each quarter that each asset closes at or above its coupon trigger on the observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless any asset finishes below barrier price, in which case 1% loss for each 1% decline of least performing asset from initial level
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| Call: | At par if each asset closes at or above 85% of its initial level on any quarterly observation date
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| Initial prices: | $25.85 for ETF, $45.78 for stock
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| Coupon triggers: | $15.51 for ETF, $27.468 for stock; 60% of initial prices
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| Barriers: | $15.51 for ETF, $27.468 for stock; 60% of initial prices
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| Pricing date: | Feb. 26
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| Settlement date: | March 3
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 4%
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| Cusip: | 40438C3G4
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