By Angela McDaniels
Tacoma, Wash., Dec. 18 – HSBC USA, Inc. priced $2 million of contingent income barrier notes due Dec. 21, 2018 linked to the iShares Nasdaq Biotechnology exchange-traded fund, according to a 424B2 filed with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 6% if the ETF closes at or above the coupon trigger, 60% of the initial share price, on the coupon determination date for that quarter.
If the ETF return is greater than or equal to negative 40%, the payout at maturity will be par. Otherwise, the payout will be a number of shares of the ETF equal to $1,000 divided by the initial price.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income barrier notes
|
| Underlying ETF: | iShares Nasdaq Biotechnology ETF
|
| Amount: | $2 million
|
| Maturity: | Dec. 21, 2018
|
| Coupon: | 6%, payable quarterly if ETF closes at or above coupon trigger on coupon determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If ETF return is greater than or equal to negative 40%, par; otherwise, 2.96 shares of ETF
|
| Initial share price: | $337.40
|
| Coupon trigger: | $202.44, 60% of initial share price
|
| Pricing date: | Dec. 16
|
| Settlement date: | Dec. 21
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40433UEU6
|
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