By William Gullotti
Buffalo, N.Y., July 27 – HSBC USA Inc. priced $2.36 million of 0% autocallable barrier notes with step-up premium due July 28, 2025 linked to the stock performance of Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an 23% annualized call premium if the stock closes at or above its call level, 80% of initial level, on any quarterly observation date.
If the stock finishes at or above 80% of initial level, the payout at maturity will be par plus 69%.
If the stock declines more than 20% but finishes at or above the 50% barrier level, investors will receive par.
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 barrier notes with step-up premium
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| Underlying stock: | Tesla, Inc.
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| Amount: | $2,364,000
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| Maturity: | July 28, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If the stock finishes at or above 80% of initial level, par plus 69%; if the stock declines more than 20% but finishes at or above barrier level, par; otherwise, investors will lose 1% for each 1% decline from initial level
|
| Call: | At par plus 23% annualized premium if the stock closes at or above 80% of initial level on any quarterly observation date after six months
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| Initial level: | $816.73
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| Barrier level: | $408.365; 50% of initial levels
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| Pricing date: | July 22
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| Settlement date: | July 27
|
| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.775%
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| Cusip: | 40441XEG1
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