By Wendy Van Sickle
Columbus, Ohio, Aug. 5 – HSBC USA Inc. priced $2 million of autocallable contingent income barrier notes due Aug. 6, 2018 linked to the common stocks of Apache Corp., Chevron Corp. and EOG Resources, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 19.25% 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.
If the notes are not called and each stock finishes at or above the 70% trigger level, the payout at maturity will be par. Otherwise, investors will receive shares of the least-performing stock with full exposure to any losses.
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: | Apache Corp., Chevron Corp. and EOG Resources, Inc.
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| Amount: | $2 million
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| Maturity: | Aug. 6, 2018
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| Coupon: | 19.25%, payable quarterly if each stock closes at or above barrier level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If each finishes at or above 70% barrier level, par; otherwise, full exposure to loss of worst performing stock with payment in shares
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| Initial levels: | $49.94 for Apache, $99.59 for Chevron and $79.89 for EOG
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| Barrier levels: | $34.96 for Apache, $69.71 for Chevron and $55.92 for EOG, 70% of initial prices
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| Pricing date: | Aug. 2
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| Settlement date: | Aug. 5
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40433UTE6
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