By William Gullotti
Buffalo, N.Y., Aug. 18 – HSBC USA Inc. priced $1.7 million of autocallable contingent income barrier notes due May 18, 2026 linked to the least performing of the equity securities of Alibaba Group Holding Ltd. and Baidu, 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 10.1% if each stock closes at or above its coupon trigger level, 60% of its initial level, on the observation date for that period.
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 one year.
If the notes are not called and each stock finishes at or above its 60% barrier value, the payout at maturity will be par plus any final coupon. Otherwise, investors will be fully exposed to the decline of the least-performing stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | Alibaba Group Holding Ltd., Baidu, Inc.
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| Amount: | $1.7 million
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| Maturity: | May 18, 2026
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| Coupon: | 10.1% per year, payable quarterly if each stock closes at or above coupon trigger on observation date for that period
|
| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par plus any final coupon; otherwise, full exposure to decline of least-performing stock
|
| Call: | At par plus coupon if each stock closes at or above initial level on any quarterly call observation date after one year
|
| Initial levels: | $219.90 for Alibaba, $183.29 for Baidu
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| Coupon triggers: | $131.94 for Alibaba, $109.974 for Baidu; 60% of initial levels
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| Barrier levels: | $131.94 for Alibaba, $109.974 for Baidu; 60% of initial levels
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| Pricing date: | May 12
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| Settlement date: | May 17
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| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.35%
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| Cusip: | 40439JAQ8
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