By Wendy Van Sickle
Columbus, Ohio, April 8 – HSBC USA Inc. priced $2.13 million of autocallable contingent income barrier notes due May 8, 2023 linked to the performance of Walt Disney Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 8.5% if the stock closes at or above the coupon trigger level, 79% of the initial share price, on the relevant observation date.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial share price on any monthly observation date after six months.
The payout at maturity will be par plus a coupon unless the stock finishes below its 79% barrier price, in which case investors will be fully exposed to the loss.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stock: | Walt Disney Co.
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| Amount: | $2,134,000
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| Maturity: | May 8, 2023
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| Coupon: | 8.5%, payable monthly if the stock closes at or above coupon trigger level on the relevant observation date
|
| Price: | Par
|
| Payout at maturity: | Par coupon unless stock closes below barrier price, in which case full exposure to loss
|
| Call: | At par plus coupon if the stock closes at or above initial price on any monthly observation date after six months
|
| Initial price: | $135.62
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| Coupon trigger/barrier price: | $107.1398; 79% of initial price
|
| Pricing date: | April 5
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| Settlement date: | April 8
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40439JM44
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