By Kiku Steinfeld
Chicago, Oct. 10 – HSBC USA Inc. priced $2.75 million of autocallable contingent income barrier notes due Sept. 30, 2026 linked to 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 annualized rate of 9.15% if each stock closes at or above the coupon trigger level, 60% of the initial price, on the observation date for that quarter.
The notes will be called at par plus the coupon if each stock closes at or above the initial price on any quarterly observation date other than the final one beginning on Sept. 25, 2020.
If the notes are not called and each stock finishes at or above the 60% barrier level, the payout at maturity will be par plus the final coupon. Otherwise, investors will lose 1% for each 1% decline of the least-performing stock from its initial price.
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: | AT&T Inc., Verizon Communications Inc.
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| Amount: | $2,750,000
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| Maturity: | Sept. 30, 2026
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| Coupon: | 9.15%, payable quarterly if each stock closes at or above coupon trigger level on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | If each stock finishes at or above barrier level, par plus the final coupon; otherwise, 1% loss for each 1% decline of the least-performing stock from initial price
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly observation date beginning after one year
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| Initial prices: | $37.38 for AT&T, $60.44 for Verizon
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| trigger/barrier levels: | $22.428 for AT&T, $ 36.264 for Verizon. 60% of initial prices
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| Pricing date: | Sept. 26
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| Settlement date: | Sept. 30
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 3.35%
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| Cusip: | 40435UYB4
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