By Kiku Steinfeld
Chicago, Jan. 20 – HSBC USA Inc. priced $3.2 million of autocallable contingent income barrier notes due Jan. 23, 2023 linked to the lesser performing of the common stocks of Lear Corp., Lockheed Martin Corp. and Raytheon Co., according to an 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 11.4% if each stock closes at or above its coupon trigger level, 60% of its initial share price, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly call observation date after six months.
The payout at maturity will be par plus the final coupon unless any stock finishes below its 60% barrier level, in which case investors will lose 1% for each 1% decline of the worst-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
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| Underlying stocks: | Lear Corp., Lockheed Martin Corp. and Raytheon Co.
|
| Amount: | $3,200,000
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| Maturity: | Jan. 23, 2023
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| Coupon: | 11.4%, payable quarterly if each stock closes at or above coupon barrier level on observation date for that quarter
|
| Price: | Par
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| Call: | At par plus coupon if each stock closes at or above the initial price on any quarterly observation date after six months
|
| Payout at maturity: | If each stock finishes at or above trigger level, par plus coupon; otherwise, 1% loss for each 1% decline of the worst-performing stock from its initial level
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| Initial levels: | $136.96 for Lear Corp., $420.95 for Lockheed Martin Corp. and $229.41 for Raytheon Co.
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| Coupon barrier levels: | $82.176 for Lear Corp., $252.57 for Lockheed Martin Corp. and $137.646 for Raytheon Co.; 60% of initial prices
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| Trigger levels: | $82.176 for Lear Corp., $252.57 for Lockheed Martin Corp. and $137.646 for Raytheon Co.; 60% of initial prices
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| Pricing date: | Jan. 15
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| Settlement date: | Jan. 21
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.35%
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| Cusip: | 40435U2Y9
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