By William Gullotti
Buffalo, N.Y., Oct. 7 – HSBC USA Inc. priced $1.05 million of autocallable contingent income barrier notes due April 8, 2024 linked to the least performing of the stocks of Royal Caribbean Cruises Ltd. and Carnival Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 47.88% if each stock closes at or above its coupon trigger level, 70% of its initial level, on the observation date for that period.
The notes will be called at par plus the coupon if each stock closes at or above its initial level on any monthly call observation date after six months.
If the notes are not called and each stock finishes at or above its coupon trigger, the payout at maturity will be par plus the final coupon.
If the worst performer finishes below its coupon trigger but at or above its 50% barrier, the payout will be par. Otherwise, investors will be fully exposed to the decline of the least-performing stock 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
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| Underlying stocks: | Royal Caribbean Cruises Ltd., Carnival Corp.
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| Amount: | $1.05 million
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| Maturity: | April 8, 2024
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| Coupon: | 47.88% per year, payable monthly if each stock closes at or above coupon trigger on observation date for that period
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above coupon trigger, par plus final coupon; if worst performer falls below coupon trigger but not below barrier level, par; otherwise, full exposure to decline of least-performing stock from its initial level
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| Call: | At par plus coupon if each stock closes at or above initial level on any monthly call observation date after six months
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| Initial levels: | $37.90 for Royal Caribbean, $7.03 for Carnival
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| Coupon triggers: | $26.53 for Royal Caribbean, $4.921 for Carnival; 70% of initial levels
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| Barrier levels: | $18.95 for Royal Caribbean, $3.515 for Carnival; 50% of initial levels
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| Strike date: | Sept. 30
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| Pricing date: | Oct. 4
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| Settlement date: | Oct. 7
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.7%
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| Cusip: | 40441XRJ1
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