By Kiku Steinfeld
Chicago, Feb. 6 – HSBC USA Inc. priced $455,000 of autocallable contingent income barrier notes due May 9, 2024 linked to the performance of Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 23.5% if the stock closes at or above the coupon trigger level, 60% of the initial share price, on the relevant observation date.
The notes will be called at par plus the contingent coupon if the stock closes at or above 100% of the initial share price on any monthly observation date after three months.
The payout at maturity will be par unless the stock finishes below its 50% final barrier price, in which case 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.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying stock: | Tesla, Inc.
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| Amount: | $455,000
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| Maturity: | May 9, 2024
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| Coupon: | 23.5%, payable monthly if the stock closes at or above coupon trigger level on the relevant observation date
|
| Price: | Par
|
| Payout at maturity: | Par unless stock finishes below final barrier price; otherwise, 1% loss for each 1% decline of the stock from its initial level
|
| Call: | At par plus coupon if the stock closes at or above 100% of initial price on any monthly observation date after three months
|
| Initial price: | $207.47
|
| Coupon trigger/barrier price: | $124.482; 60% of initial price
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| Final barrier price: | $103.735; 50% of initial price
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| Pricing date: | Nov. 4, 2022
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| Settlement date: | Nov. 9, 2022
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| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.2%
|
| Cusip: | 40441XST8
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