By Kiku Steinfeld
Chicago, Jan. 11 – HSBC USA Inc. priced $3.21 million of autocallable contingent income barrier notes due Nov. 18, 2024 linked to the common stock of Penn National Gaming, 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 15% if the stock closes at or above its coupon trigger level, 50% of the initial level, on the observation date for that period.
The notes will be called at par plus the coupon if the stock closes at or above its initial share price on any quarterly call observation date after six months.
If the notes are not called and the stock finishes at or above its 50% barrier level, the payout at maturity will be par plus the final coupon(s). Otherwise, investors will lose 1% for each 1% decline of the stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stock: | Penn National Gaming, Inc.
|
| Amount: | $3.21 million
|
| Maturity: | Nov. 18, 2024
|
| Coupon: | 15% annual rate, payable quarterly if the stock closes at or above coupon trigger level on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If the stock finishes at or above barrier level, par plus the final coupon; otherwise, 1% loss for each 1% decline of the stock from initial level
|
| Call: | At par plus coupon if the stock closes at or above initial price on any quarterly call observation date after six months
|
| Initial level: | $58.25
|
| Coupon trigger level: | $29.125, 50% of initial prices
|
| Barrier level: | $29.125, 50% of initial prices
|
| Pricing date: | Nov. 12
|
| Settlement date: | Nov. 17
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0%
|
| Cusip: | 40439JSF3
|
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