By Wendy Van Sickle
Columbus, Ohio, Sept. 27 – HSBC USA Inc. priced $824,500 of trigger autocallable contingent yield notes due Sept. 26, 2019 linked to the common stock of V.F. Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 7% per year if the shares close at or above the downside threshold level, 72% of the initial share price, on the observation date for that quarter.
March 23, 2017, the notes will be automatically called at par of $10 if V.F. shares close at or above the initial share price on any quarterly observation date.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the contingent coupon, if any. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying stock: | V.F. Corp. (Symbol: VFC)
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| Amount: | $824,500
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| Maturity: | Sept. 26, 2019
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| Coupon: | Each quarter, notes pay contingent coupon at rate of 7% per year if shares close at or above downside threshold level on observation date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | If notes are not called and final price is greater than or equal to downside threshold level, par; otherwise, 1% loss for every 1% that final price is less than initial price
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| Call: | March 23, 2017, automatically at par if shares close at or above initial share price on any quarterly observation date
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| Initial price: | $56.95
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| Downside threshold: | $41.00, 72% of initial price
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| Pricing date: | Sept. 23
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| Settlement date: | Sept. 29
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| Agents: | UBS Financial Services Inc. and UBS Investment Bank
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| Fees: | 2%
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| Cusip: | 40435B684
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