By William Gullotti
Buffalo, N.Y., Feb. 6 – HSBC USA Inc. priced $1.33 million of trigger autocallable contingent yield notes due Feb. 7, 2024 linked to the Applied Materials, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will bear interest at a 11.6% annual rate, paid quarterly if the stock closes at or above its 55% coupon barrier on the relevant observation date.
The notes will be called at par of $10 plus the coupon if the stock closes at or above its initial level on any quarterly observation date.
The payout at maturity will be par plus the final coupon unless the stock finishes below the downside threshold level, 55% of its initial level, in which case investors will lose 1% for every 1% loss of the stock from its initial level.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying stock: | Applied Materials, Inc.
|
| Amount: | $1,327,500
|
| Maturity: | Feb. 7, 2024
|
| Coupon: | 11.6% annual rate, paid quarterly if the stock closes at or above its 55% coupon barrier on the relevant observation date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus final coupon unless the stock finishes below downside threshold, in which case 1% loss for every 1% decline of stock from initial level
|
| Call: | At par plus the coupon if the stock closes at or above initial level on any quarterly observation date
|
| Initial stock level: | $111.49
|
| Coupon barrier: | $61.32; 55% of initial level
|
| Downside threshold: | $61.32; 55% of initial level
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| Strike date: | Jan. 31
|
| Pricing date: | Feb. 1
|
| Settlement date: | Feb. 6
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40441B272
|
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