By Sarah Lizee
Olympia, Wash., July 6 – HSBC USA Inc. priced $2.5 million of autocallable contingent income barrier notes due June 30, 2025 linked to the least performing of the common stocks of ConocoPhillips, Citigroup Inc. and American Airlines Group Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annual rate of 42.25% if each stock closes at or above its coupon trigger price, 60% of the initial share price, on the observation date for that month.
The notes will be called at par plus the contingent coupon if each stock closes at or above 90% of its initial share price on any monthly call date starting June 27, 2022.
If the notes are not called, the payout at maturity will be par unless any stock finishes below its 50% trigger level, in which case investors will be fully exposed to the decline of the least performing stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stocks: | ConocoPhillips, Citigroup Inc. and American Airlines Group Inc.
|
| Amount: | $2.5 million
|
| Maturity: | June 30, 2025
|
| Coupon: | Each month, 42.25% per year if stocks close at or above coupon trigger price on observation date
|
| Price: | Par
|
| Payout at maturity: | If stocks finish at or above trigger price, par; otherwise, full exposure to decline of least performing stock
|
| Call: | Automatically at par plus the contingent coupon if each stock closes at or above 90% of its initial share price on any coupon observation date on any monthly call date starting June 27, 2022
|
| Initial share prices: | $42.06 for ConocoPhillips, $52.68 for Citigroup and $13.17 for American Airlines
|
| Coupon trigger: | 60% of initial prices
|
| Trigger prices: | 50% of initial prices
|
| Pricing date: | June 25
|
| Settlement date: | June 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.25%
|
| Cusip: | 40438CMW8
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
