Chicago, Dec. 5 – HSBC USA Inc. priced $1.36 million of autocallable contingent income barrier notes due March 31, 2025 linked to the common stock of AGCO 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 9.25% if the stock closes at or above its coupon trigger level, 60% of the initial level, on the observation date for that period.
The notes will be called at par plus the coupon if the 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 the stock finishes at or above its 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 stock from its initial level, payable in shares or cash at the option of the issuer.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stock: | AGCO Corp.
|
| Amount: | $1,360,000
|
| Maturity: | March 31, 2025
|
| Coupon: | 9.25% annual rate, payable quarterly if the stock closes at or above coupon trigger level on observation date for that period
|
| Price: | Par
|
| Payout at maturity: | If the stock finishes at or above barrier level, par plus the final coupon; otherwise, 1% loss for each 1% decline of the stock from initial level, payable in shares or cash at the option of the issuer
|
| Call: | At par plus coupon if the stock closes at or above initial price on any quarterly call observation date after six months
|
| Initial level: | $142.32
|
| Coupon trigger level: | $85.392, 60% of initial price
|
| Barrier level: | $85.392, 60% of initial price
|
| Pricing date: | March 29
|
| Settlement date: | March 31
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40439JK61
|
|
|
© 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.
