By Kiku Steinfeld
Chicago, Jan. 21 – HSBC USA Inc. priced $1.27 million of autocallable contingent income barrier notes due Jan. 5, 2024 linked to the stocks of Adobe Inc., Pioneer Natural Resources Co. and Goldman Sachs Group, 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 19% if each stock closes at or above the barrier level, 70% of its initial level, on the determination date for that quarter.
The notes will be called at par plus the coupon if each stock closes at or above the initial price on any quarterly observation date after six months.
The payout at maturity will be par unless any stock finishes below the barrier level, in which case investors will receive a number of shares of the least performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | Adobe Inc., Pioneer Natural Resources Co. and Goldman Sachs Group, Inc.
|
| Amount: | $1.27 million
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| Maturity: | Jan. 5, 2024
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| Coupon: | 19% per year, payable quarterly if each stock closes at or above barrier level on determination date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below barrier level, in which case, shares of least performer equal to $1,000 divided by initial price or cash at issuer’s option
|
| Call: | Par if each stock closes at or above initial price on any quarterly observation date after six months
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| Initial levels: | $567.06 for Adobe, $181.88 for Pioneer and $382.55 for Goldman
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| Barrier levels: | $396.942 for Adobe, $127.316 for Pioneer and $267.785 for Goldman; 70% of initial prices
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| Pricing date: | Dec. 31
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| Settlement date: | Jan. 5
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.75%
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| Cusip: | 40428HRR5
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