Published on 6/19/2017 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.08 million contingent income barrier autocallables linked to stocks
By Wendy Van Sickle
Columbus, Ohio, June 19 – HSBC USA Inc. priced $2.08 million of autocallable contingent income barrier notes due June 21, 2019 linked to the least performing of the common stocks of Amazon.com, Inc., Microsoft Corp. and Nvidia Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 20.5% if each stock closes at or above its trigger level, 70% of its initial share price, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date.
The payout at maturity will be par plus the final coupon unless any stock finishes below its trigger level, in which case investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by the initial share price of that stock.
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: | Amazon.com, Inc., Microsoft Corp. and Nvidia Corp.
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| Amount: | $2,075,000
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| Maturity: | June 21, 2019
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| Coupon: | 20.5%, payable quarterly if each stock closes at or above trigger level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, number of shares of the worst-performing stock equal to $1,000 divided by initial share price
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| Initial level: | $987.71 for Amazon, $70.00 for Microsoft, $151.62 for Nvidia
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| Trigger/barrier level: | $691.397 for Amazon, $49.00 for Microsoft, $106.134 for Nvidia, 70% of initial price
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| Pricing date: | June 16
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| Settlement date: | June 21
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40435D227
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