By Susanna Moon
Chicago, March 27 – HSBC USA Inc. priced $1.43 million of autocallable contingent income barrier notes due March 22, 2019 linked to the least performing of Concho Resources Inc., Devon Energy Corp. and Pioneer Natural Resources Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 20.5% if each stock closes at or above the 70% coupon barrier on a review date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above the initial level on any quarterly determination date.
The payout at maturity will be par plus the contingent coupon unless any stock finishes below its 70% downside threshold, in which case investors will be fully exposed to any losses of the worst performing stock.
HSBC Securities (USA) Inc. is the underwriter, with Morgan Stanley Wealth Management as dealer.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stocks: | Concho Resources Inc. (NYSE: CXO), Devon Energy Corp. (NYSE: DVN) and Pioneer Natural Resources Co. (NYSE: PXD)
|
| Amount: | $1.43 million
|
| Maturity: | March 22, 2019
|
| Coupon: | 20.5%, payable quarterly if each stock closes at or above 70% coupon barrier on review date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock falls below 70% trigger, in which case par plus return of the worst performing stock
|
| Call: | At par plus contingent coupon if each stock closes at or above its initial level on any quarterly determination date
|
| Initial levels: | $130.47 for Concho, $40.54 for Devon and $184.79 for Pioneer
|
| Barrier levels: | $91.329 for Concho, $28.378 for Devon and $129.353 for Pioneer, 70% of initial levels
|
| Pricing date: | March 17
|
| Settlement date: | March 22
|
| Underwriters: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
| Cusip: | 40435D607
|
|
|
|
|
© 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.
