By Sarah Lizee
Olympia, Wash., May 2 – HSBC USA Inc. priced $3.1 million of autocallable contingent income barrier notes due March 29, 2021 linked to the common stocks of Caterpillar Inc. and Deere & Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 8.7% if each stock closes at or above the coupon trigger level, 60% of the initial level, on the observation 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.
If the notes are not called and each stock finishes at or above the 60% 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.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stocks: | Caterpillar Inc. and Deere & Co.
|
| Amount: | $3,095,000
|
| Maturity: | March 29, 2021
|
| Coupon: | 8.7%, payable quarterly if each stock closes at or above coupon trigger level on observation date for that quarter
|
| Price: | Par
|
| 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
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly observation date after six months
|
| Initial levels: | $139.03 for Caterpillar and $165.01 for Deere
|
| Coupon trigger levels: | $83.418 for Caterpillar and $99.006 for Deere, 60% of initial prices
|
| Barrier levels: | $83.418 for Caterpillar and $99.006 for Deere, 60% of initial prices
|
| Pricing date: | April 26
|
| Settlement date: | April 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40435ULU6
|
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