By Wendy Van Sickle
Columbus, Ohio, Oct. 18 – HSBC USA Inc. priced $6.22 million of 5.05% worst-of autocallable fixed-rate notes due April 22, 2019 linked to the Russell 2000 index and the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable semiannually.
The notes will be called at par plus the coupon if each underlying component closes at or above its initial level on any semiannual call date.
The payout at maturity will be par unless either component finishes below the 80% barrier level, in which case investors will lose 1.25% for each 1% decline of the worse performing component.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Worst-of autocallable fixed-rate notes
|
| Underlying assets: | Russell 2000 index and the iShares MSCI EAFE ETF
|
| Amount: | $6,217,000
|
| Maturity: | April 22, 2019
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| Coupon: | 5.05%, payable semiannually
|
| Price: | Par
|
| Payout at maturity: | Par unless either component falls by more than 20%, in which case 1.25% loss per 1% decline of worse performing component beyond 20%
|
| Call: | At par plus coupon if each underlying asset closes at or above initial level on any semiannual date
|
| Initial levels: | 1,502.681 for Russell and $69.52 for fund
|
| Barrier levels: | 80% of initial levels
|
| Pricing date: | Oct. 16
|
| Settlement date: | Oct. 19
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Fees: | 0.05%
|
| Cusip: | 40435FJK4
|
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