By Kiku Steinfeld
Chicago, Aug. 17 – HSBC USA Inc. priced $2 million of autocallable contingent income barrier notes due Aug. 4, 2023 linked to the common stocks of Lowe’s Cos. Inc., Roku, Inc. and Snowflake Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 29% if each stock closes at or above the barrier level, 70% of the initial level, on the determination date for that quarter.
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 after six months.
The payout at maturity will be par unless any stock finishes below 70% of its initial value, in which case investors will receive a number of shares of the least performing stock equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.
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: | Lowe’s Cos. Inc., Roku, Inc. and Snowflake Inc.
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| Amount: | $2 million
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| Maturity: | Aug. 4, 2023
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| Coupon: | 29%, payable quarterly if each stock closes at or above barrier level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | Par plus unless any stock finishes below barrier, in which case investors will receive a number of shares of least performing stock equal to $1,000 divided by initial price or, at issuer’s option, cash equivalent
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| Call: | Par if each stock closes at or above the initial price on any quarterly observation date after six months
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| Initial levels: | $192.69 for Lowe’s, $428.31 for Roku and $265.72 for Snowflake
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| Barrier levels: | $134.883 for Lowe’s, $299.817 for Roku and $186.004 for Snowflake; 70% of initial prices
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| Pricing date: | July 30
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| Settlement date: | Aug. 4
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.75%
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| Cusip: | 40428HQT2
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