By William Gullotti
Buffalo, N.Y., Jan. 14 – HSBC USA Inc. priced $422,000 of autocallable contingent income barrier notes with memory coupon due Feb. 28, 2023 linked to the performance of the Nasdaq-100 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 5.65% if each index closes at or above its coupon trigger level, 80% of its initial level, on the observation date for that period. Previously unpaid coupons, if any, will be automatically included whenever coupon payments are made.
The notes will be called at par plus the coupon, and any previously unpaid coupons, if each index closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and each index finishes at or above its 80% barrier value, the payout at maturity will be par plus the final coupon plus any previously unpaid coupons. Otherwise, investors will be fully exposed to the decline of the least-performing index 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 indexes: | Nasdaq-100 index, Russell 2000 index
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| Amount: | $422,000
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| Maturity: | Feb. 28, 2023
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| Coupon: | 5.65% per year, payable quarterly if each index closes at or above coupon trigger on observation date for that period; coupon payment events will automatically include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | If each index finishes at or above barrier level, par plus the final coupon and any previously unpaid coupons; otherwise, full exposure to decline of least-performing index from its initial level
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| Call: | At par plus coupon if each index closes at or above initial level on any quarterly call observation date after six months
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| Initial levels: | 15,278.52 for Nasdaq, 2,213.979 for Russell
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| Coupon triggers: | 80% of initial levels
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| Barrier levels: | 80% of initial levels
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| Pricing date: | Aug. 26
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| Settlement date: | Aug. 31
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.525%
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| Cusip: | 40439JHL2
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