By Wendy Van Sickle
Columbus, Ohio, June 21 – HSBC USA Inc. priced $7.45 million of contingent income autocallable securities due Dec. 20, 2018 linked to the common stock of Nvidia Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 12.5% if the stock closes at or above the 80% coupon barrier on the observation date for that month.
The notes will be called at par if the stock closes at or above its initial level on any of the first five determination dates.
The payout at maturity will be par unless the underlying stock finishes below its 80% trigger level, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Nvidia Corp.
|
| Amount: | $7,451,730
|
| Maturity: | Dec. 20, 2018
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| Coupon: | 12.5%, payable monthly if stock closes at or above 80% coupon barrier on observation date for that month
|
| Price: | Par
|
| Payout at maturity: | Par unless stock finishes below 80% trigger, in which case 1% loss per 1% decline
|
| Call: | At par if stock closes at or above initial level on any of the first five determination dates
|
| Initial level: | $265.26
|
| Trigger levels: | $212.21, 80% of initial levels
|
| Pricing date: | June 15
|
| Settlement date: | June 20
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.25%
|
| Cusip: | 40435X504
|
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