By Wendy Van Sickle
Columbus, Ohio, March 15 – HSBC USA Inc. priced $2.52 million of trigger autocallable contingent yield notes due March 13, 2020 linked to the common stock of Merck & Co., Inc., 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, 71.5% of the initial share price, on the observation date for that quarter.
After one year, the notes will be automatically called at par of $10 if the shares close at or above the initial share price on any monthly observation date.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, 71.5% of the initial share price, the payout at maturity will be par. 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.
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying stock: | Merck & Co., Inc.
|
| Amount: | $2,519,000
|
| Maturity: | March 13, 2020
|
| Contingent coupon: | 7%, payable quarterly if stock closes at or above downside threshold on observation date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par unless stock finishes below downside threshold level, in which case 1% loss for each 1% decline from initial level
|
| Call: | After six months, automatically at par if stock closes at or above initial level on any quarterly observation date
|
| Initial price: | $65.60
|
| Coupon/downside threshold: | $46.90, 71.5% of initial price
|
| Pricing date: | March 10
|
| Settlement date: | March 15
|
| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
| Cusip: | 40435D201
|
|
|
© 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.
