By Wendy Van Sickle
Columbus, Ohio, Nov. 21 – HSBC USA Inc. priced $8,85 million of autocallable contingent income barrier notes due Nov. 18, 2022 linked to the common stock of Lowe’s Cos., Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes pay a contingent coupon at the rate of 10% per year if the stock closes at or above its barrier value, 75% of its initial share price, on the observation date for that quarter.
The notes will be called at par if the stock closes at or above its initial share price on any quarterly observation date.
The payout at maturity will be par unless the stock finishes below its barrier value, in which case investors will lose 1% for every 1% that the stock declines from its initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stock: | Lowe’s Cos., Inc.
|
| Amount: | $8,851,930
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| Maturity: | Nov. 18, 2022
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| Coupon: | 10% per year, payable quarterly if stock closes at or above barrier value on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless stock finishes below barrier value, in which case 1% loss for every 1% that stock declines from initial share price
|
| Call: | Automatically at par if stock closes at or above initial share price on any quarterly observation date
|
| Initial share price: | $115.52
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| Barrier level: | $86.64, or 75% of initial share price
|
| Pricing date: | Nov. 15
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| Settlement date: | Nov. 20
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40438B558
|
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