By Susanna Moon
Chicago, Dec. 18 – HSBC USA Inc. priced $4.35 million of autocallable contingent income barrier due Dec. 9, 2024 linked to the common stocks of Cisco Systems, Inc. and Intel Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 8% if each stock closes at or above the 60% coupon barrier on the observation date for that quarter.
The notes will be called at par if each stock closes at or above its initial level on any review date after one year.
The payout at maturity will be par unless either stock finishes below its 60% trigger level, in which case investors will be fully exposed to any losses of the worse performing 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: | Cisco Systems, Inc. (Nasdaq: CSCO) and Intel Corp. (Nasdaq: INTC)
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| Amount: | $4.35 million
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| Maturity: | Dec. 9, 2024
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| Coupon: | 8%, payable quarterly if each stock closes at or above 60% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless either stock falls below 60% trigger, in which case full exposure to any losses of worse performing stock
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| Call: | At par if each index closes at or above initial level on any quarterly review date beginning Dec. 5, 2018
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| Initial levels: | $37.31 for Cisco and $43.44 for Intel
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| Barrier levels: | $22.386 for Cisco and $26.064 for Intel; 60% of initial levels
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| Pricing date: | Dec. 5
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| Settlement date: | Dec. 8
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.35%
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| Cusip: | 40435FNS2
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