By Wendy Van Sickle
Columbus, Ohio, March 8 – HSBC USA Inc. priced $1.6 million of autocallable contingent income barrier notes due March 6, 2024 linked to the lesser performing of the common stocks Eli Lilly & Co. and Merck & Co, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at a rate of 8.15% per year if each stock closes at or above its trigger level, 60% of its initial share price, on the observation date for that quarter.
After six months, the notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date.
The payout at maturity will be par plus the final coupon unless either stock finishes below its trigger level, in which case investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by the initial share price of that stock.
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: | Eli Lilly & Co. and Merck & Co, Inc.
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Amount: | $1.6 million
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Maturity: | March 6, 2024
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Coupon: | 8.15%, payable each quarter that each stock closes at or above trigger level on determination date for that quarter
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Price: | Par
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Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, a number of shares of the worst performing stock equal to $1,000 divided by the initial price of that stock
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Call: | At par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date after six months
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Initial levels: | $83.85 for Eli Lilly, $66.21 for Merck
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Trigger levels: | $50.31 for Eli Lilly, $39.726 for Merck; 60% of initial prices
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Pricing date: | March 1
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Settlement date: | March 6
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.85%
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Cusip: | 40433UW77
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