By Wendy Van Sickle
Columbus, Ohio, April 6 – HSBC USA Inc. priced $2.43 million of autocallable contingent income barrier notes with memory coupon due March 29, 2021 linked to the common stocks of Caterpillar Inc. and Deere & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 9.25% if each stock closes at or above the coupon trigger level, 65% of the initial level, on the observation date for that quarter. A coupon will also be paid for any previous quarter during the life of the notes during which no coupon was paid.
The notes will be called at par plus the coupon if each stock closes at or above the initial price on any quarterly observation date.
If the notes are not called and each stock finishes at or above the 65% barrier level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% 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 with memory coupon
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| Underlying stocks: | Caterpillar Inc. and Deere & Co.
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| Amount: | $2,428,000
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| Maturity: | March 29, 2021
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| Coupon: | 9.25%, payable quarterly if each stock closes at or above coupon trigger level on observation date for that quarter; coupon will also be paid for any previous quarter during which no coupon was paid
|
| Price: | Par
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| Payout at maturity: | If each finishes at or above barrier level, par plus the final coupon; otherwise, 1% loss for each 1% decline of the least-performing stock from initial level
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly observation date
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| Initial levels: | $146.99 for Caterpillar and $152.16 for Deere
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| Coupon trigger levels: | $95.5435 for Caterpillar and $98.904 for Deere, 65% of initial prices
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| Barrier levels: | $95.5435 for Caterpillar and $98.904 for Deere, 65% of initial prices
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| Pricing date: | March 27
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| Settlement date: | March 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.35%
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| Cusip: | 40435FWG8
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