Chicago, March 31 – HSBC USA Inc. priced $511,000 of callable notes with contingent return due March 28, 2024 linked to the performance 3M Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 7.75% if the stock closes at or above the 70% coupon trigger level on the related observation date.
HSBC may call the notes on any quarterly coupon payment date after six months.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below its 70% barrier level, in which case investors will receive a number of shares equal to $1,000 divided by the stock’s initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Callable notes with contingent return
|
| Underlying stock: | 3M Co.
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| Amount: | $511,000
|
| Maturity: | March 28, 2024
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| Coupon: | 7.75%, payable quarterly if the stock closes at or above coupon trigger on related observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless the stock finishes below barrier value, in which case investors will receive number of shares equal to $1,000 divided by the initial level
|
| Call option: | At par on any quarterly coupon payment date after six months
|
| Initial level: | $150.46,
|
| Coupon trigger: | $105.322; 70% of initial values
|
| Barrier value: | $105.322; 70% of initial values
|
| Pricing date: | March 25
|
| Settlement date: | March 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.75%
|
| Cusip: | 40428HSM5
|
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