By Sarah Lizee
Olympia, Wash., Oct. 2 – HSBC USA Inc. priced $5.90 million of autocallable contingent income barrier notes due Oct. 2, 2020 linked to the least performing of the common stocks of AT&T Inc. and Verizon Communications Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10% if each stock closes at or above 78% of its initial price on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly call observation date beginning Jan. 2, 2019.
The payout at maturity will be par unless any stock finishes below 78% of its initial price, in which case investors will be fully exposed to any losses of the worst performing stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stock: | AT&T Inc. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ)
|
| Amount: | $5,898,000
|
| Maturity: | Oct. 2, 2020
|
| Coupon: | 10%, payable quarterly if each stock closes at or above 78% of initial price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock finishes below 78% of initial price, in which case 1% loss per 1% decline of worst performing stock
|
| Call: | At par if each stock closes at or above initial level on any quarterly determination date beginning Jan. 2, 2019
|
| Initial level: | $33.42 for AT&T and $53.59 for Verizon
|
| Trigger levels: | $26.0676 for AT&T and $41.8002 for Verizon, 78% of initial levels
|
| Pricing date: | Sept. 27
|
| Settlement date: | Oct. 2
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.25%
|
| Cusip: | 40435FZ42
|
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