By Tali Rackner
Minneapolis, July 13 – HSBC USA Inc. priced $7.36 million of contingent income autocallable securities due July 11, 2019 linked to the common stock of United States Steel 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 13% if the stock closes at or above the 60% downside threshold on the observation date for that quarter.
The notes will be called at par if the stock closes at or above its initial level on any of the first three determination dates.
The payout at maturity will be par unless the underlying stock finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | United States Steel Corp. (Symbol: X)
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| Amount: | $7,361,910
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| Maturity: | July 11, 2019
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| Coupon: | 13%, payable quarterly if stock closes at or above its 60% downside threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless stock finishes below 60% downside threshold, in which case full exposure to losses
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| Call: | At par if stock closes at or above initial level on any of the first three determination dates
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| Initial price: | $35.34
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| Trigger price: | $21.20, 60% of initial price
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| Pricing date: | July 6
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| Settlement date: | July 11
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.75%
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| Cusip: | 40435X868
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