By Wendy Van Sickle
Columbus, Ohio, Nov. 15 – HSBC USA Inc. priced $5.78 million of trigger autocallable contingent yield notes due Jan 2, 2020 linked to the Euro Stoxx Banks index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 8% per year if the index closes at or above the coupon barrier, 69.5% of the initial level, on the observation date for that quarter.
After six months, the notes will be automatically called at par of $10 if the index closes at or above the initial level on any observation date.
If the notes are not called and the final index level is greater than or equal to the 69.5% downside threshold level, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will lose 1% for every 1% that index declines from its initial level.
UBS Financial Services Inc. will act as distributor.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable contingent yield notes
|
| Underlying index: | Euro Stoxx Banks
|
| Amount: | $5,781,500
|
| Maturity: | Jan. 2, 2020
|
| Contingent coupon: | 8%, payable quarterly if index closes at or above coupon barrier on quarterly observation date
|
| Price: | Par of $10
|
| Payout at maturity: | Par unless index finishes below downside threshold level, in which case 1% loss for each 1% decline from initial level
|
| Call: | After six months, automatically at par if index closes at or above initial level on any quarterly observation date other than the final one
|
| Initial level: | 131.82
|
| Barrier/downside threshold: | 91.61, 69.5% of initial price
|
| Pricing date: | Dec. 27
|
| Settlement date: | Dec. 29
|
| Agent: | UBS Financial Services Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40435J679
|
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