By Wendy Van Sickle
Columbus, Ohio, July 13 – HSBC USA Inc. priced $1.71 million of autocallable contingent income barrier notes with memory coupon feature due July 6, 2022 to the Qualcomm, Inc. shares, 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% if the stock closes at or above the barrier level, 70% of the initial level, on the determination date for that quarter. A coupon will also be paid for any previous quarter during which no coupon was paid.
The notes will be called at par plus the coupon if the stock closes at or above the initial price on any quarterly observation date beginning Jan. 3, 2018.
If the notes are not called and the stock finishes at or above the 70% trigger level, the payout at maturity will be par. Otherwise, investors will be fully exposed to any losses.
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 stock: | Qualcomm, Inc.
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| Amount: | $1,707,000
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| Maturity: | July 6, 2022
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| Coupon: | 8% payable quarterly if stock closes at or above trigger level on determination date for that quarter; coupon will also be paid for any previous quarter during which no coupon was paid
|
| Price: | Par
|
| Payout at maturity: | If stock finishes at or above barrier level, par; otherwise, full exposure to losses
|
| Call: | At par plus the coupon if the stock closes at or above the initial price on any quarterly observation date beginning Jan. 3, 2018
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| Initial level: | $55.22
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| Trigger/barrier level: | $38.654, 70% of initial price
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| Pricing date: | June 30
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| Settlement date: | July 6
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.35%
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| Cusip: | 40435G105
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