By Devika Patel
Knoxville, Tenn., July 7 – HSBC USA Inc. priced $2.14 million of autocallable contingent income barrier notes due June 26, 2020 linked to the common stocks of JPMorgan Chase & Co. and Pfizer 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 8.4% if each stock closes at or above the coupon trigger level, 70% of the initial level, 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 beginning Dec. 26, 2017.
If the notes are not called and each stock finishes at or above the 70% 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 level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
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| Underlying stocks: | JPMorgan Chase & Co. and Pfizer Inc.
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| Amount: | $2,135,000
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| Maturity: | June 26, 2020
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| Coupon: | 8.4%, payable quarterly if each stock closes at or above coupon trigger level on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each finishes at or above 70% barrier level, par plus the final coupon; otherwise, 1% loss for each 1% decline of the least-performing stock from initial level
|
| Call: | At par plus coupon if each stock closes at or above initial price on any quarterly observation date beginning Dec. 26, 2017
|
| Initial levels: | $86.86 for JPMorgan and $34.17 for Pfizer
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| Coupon trigger levels: | $60.802 for JPMorgan and $23.919 for Pfizer, 70% of initial prices
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| Barrier levels: | $60.802 for JPMorgan and $23.919 for Pfizer, 70% of initial prices
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| Pricing date: | June 23
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| Settlement date: | June 28
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.35%
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| Cusip: | 40435FAG2
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