By Taylor Fox
New York, March 16 – HSBC USA Inc. priced $760,000 of autocallable contingent income barrier notes due March 9, 2026 linked to the least performing of the equity shares of Cigna Corp. and Dollar General Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 8.5% if each stock closes at or above its coupon trigger level, 55% of the initial level, on the observation date for that period.
The notes will be called at par plus the coupon if each stock closes at or above its initial share price on any quarterly call observation date after six months.
If the notes are not called and each stock finishes at or above its 55% barrier level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% decline of the least-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: | Cigna Corp. and Dollar General Corp.
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Amount: | $760,000
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Maturity: | March 9, 2026
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Coupon: | 8.5% annual rate, payable quarterly if each stock closes at or above coupon trigger level on observation date for that period
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Price: | Par
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Payout at maturity: | If each stock finishes at or above barrier level, par plus the final coupon; otherwise, 1% loss for each 1% decline of the least-performing stock from initial level
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Call: | At par plus coupon if each stock closes at or above initial price on any quarterly call observation date after six months
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Initial levels: | $220.63 for Cigna and $182.89 for Dollar General
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Coupon trigger levels: | $121.3465 for Cigna and $100.5895 for Dollar General, 55% of initial prices
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Barrier levels: | $121.3465 for Cigna and $100.5895 for Dollar General, 55% of initial prices
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Pricing date: | March 3
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Settlement date: | March 8
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.5%
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Cusip: | 40438C3F6
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