By Susanna Moon
Chicago, Dec. 15 – HSBC USA Inc. priced $2.33 million of autocallable contingent income securities due Dec. 4, 2020 linked to Prudential Financial, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 8% if the stock closes at or above the 80% barrier level on the review date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if the stock closes at or above its initial level on any of the first 11 determination dates.
The payout at maturity will be par unless the stock finishes below its 80% barrier level, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income securities
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| Underlying stock: | Prudential Financial, Inc. (Symbol: PRU)
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| Amount: | $2,330,060
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| Maturity: | Dec. 4, 2020
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| Coupon: | 8% per year, payable quarterly if stock closes at or above barrier on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If stock finishes at or above barrier, par; otherwise, 1% loss for each 1% decline
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| Call: | At par if stock closes at or above initial level on any of the first 11 determination dates
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| Initial level: | $115.40
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| Barrier level: | $92.32, 80% of initial level
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| Pricing date: | Dec. 1
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| Settlement date: | Dec. 6
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40435J885
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