By Susanna Moon
Chicago, March 27 – HSBC USA Inc. priced $1 million of autocallable contingent income barrier notes due March 25, 2024 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent annual coupon at an annual rate of 7.55% if the index closes at or above the 80% coupon barrier on a review date for that year. If a coupon payment is missed because the index closes below the barrier, it will be paid on the next coupon payment date on which the stock closes at or above the barrier.
The notes will be called at par plus the contingent coupon if the index closes at or above the 105% call level on any annual determination dates.
The payout at maturity will be par plus the contingent coupon unless the index finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the underwriter, with Morgan Stanley Wealth Management as dealer.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying index: | Euro Stoxx 50
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| Amount: | $1 million
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| Maturity: | March 25, 2024
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| Coupon: | 7.55%, payable annually if index closes at or above 80% coupon barrier on review date for that year
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| Price: | Par
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| Payout at maturity: | Par unless the index falls below 60% trigger, in which case par plus index return
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| Call: | At par plus contingent coupon if the shares close at or above 105% call level on any annual determination date
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| Initial level: | 3,437.48
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| Coupon barrier: | 2,749.984, 80% of initial level
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| Trigger level: | 2,062.488, 60% of initial level
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| Pricing date: | March 20
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| Settlement date: | March 23
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| Underwriters: | HSBC Securities (USA) Inc.
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| Fees: | 2.25%
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| Cusip: | 40433UZ25
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