By Sarah Lizee
Olympia, Wash., July 8 – HSBC USA Inc. priced $1.5 million of autocallable contingent income barrier notes due June 30, 2025 linked to the common stock of Western Digital Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a 13.5% contingent coupon if the stock closes at or above the coupon trigger level, 55% of the initial share price, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial share price on any coupon observation date beginning Dec. 24.
The payout at maturity will be par plus the final coupon unless the stock finishes below its 55% barrier price, in which case investors will be fully exposed to the decline in the stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying stock: | Western Digital Corp.
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| Amount: | $1.5 million
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| Maturity: | June 30, 2025
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| Coupon: | 13.5%, payable quarterly if the stock closes at or above coupon trigger level on observation date for that quarter
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| Price: | Par
|
| Payout at maturity: | Par pus final coupon unless stock closes below barrier price; in which case full exposure to losses
|
| Call: | At par plus coupon if the stock closes at or above initial price on any quarterly observation date starting Dec. 24
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| Initial price: | $40.87
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| Coupon trigger/barrier price: | 55% of initial price
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| Pricing date: | June 26
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| Settlement date: | June 30
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40438CNB3
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