By Susanna Moon
Chicago, Dec. 9 – HSBC USA Inc. priced $2 million of autocallable contingent income barrier notes due Dec. 11, 2017 linked to the common stocks of Chevron Corp., EOG Resources, Inc. and Pioneer Natural Resources 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 14% 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 beginning March 8, 2017.
The payout at maturity will be par unless any stock finishes below the 70% trigger level, in which case investors will receive a number of shares of the worst performing stock equal to the principal amount divided by the initial share price.
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: | Chevron Corp. (Symbol: CVX), EOG Resources, Inc. (Symbol: EOG) and Pioneer Natural Resources Co. (Symbol: PXD)
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| Amount: | $2 million
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| Maturity: | Dec. 11, 2017
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| Coupon: | 14%, payable quarterly if each stock closes at or above 70% coupon barrier level on determination date for that quarter
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| Price: | Par
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| Call: | At par if each stock closes at or above the initial price on any quarterly observation date beginning March 8, 2017
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| Payout at maturity: | If each finishes at or above 70% trigger level, par; otherwise, a number of shares equal to the principal amount divided by the initial price of the worst performing stock
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| Initial levels: | $112.76 for Chevron, $103.97 for EOG and $184.77 for Pioneer
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| Trigger levels: | $78.932 for Chevron, $72.779 for EOG and $129.339 for Pioneer; 70% of initial prices
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| Pricing date: | Dec. 6
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| Settlement date: | Dec. 9
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.25%
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| Cusip: | 40433UE36
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