By Toni Weeks
San Luis Obispo, Calif., June 15 – HSBC USA Inc. priced $5 million of autocallable contingent income barrier notes due June 17, 2019 linked to the SPDR S&P Oil & Gas Exploration and Production exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 6% per year if the ETF closes at or above the barrier level, 60% of the initial share price, on the determination date for that quarter.
The notes will be automatically called at par if the ETF closes at or above the initial share price on any annual call observation date.
If the notes are not called and the ETF finishes at or above the barrier level, the payout at maturity will be par. Otherwise, the payout will be a number of shares of the ETF equal to $1,000 divided by the initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying fund: | SPDR S&P Oil & Gas Exploration and Production ETF
|
| Amount: | $5 million
|
| Maturity: | June 17, 2019
|
| Coupon: | 6%, payable quarterly if fund closes at or above barrier level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If fund finishes at or above 60% barrier level, par; otherwise, a number of shares of the ETF equal to $1,000 divided by initial share price
|
| Call: | At par if ETF closes at or above initial share price on any annual call observation date
|
| Initial price: | $49.70
|
| Barrier level: | $29.82, 60% of initial price
|
| Pricing date: | June 11
|
| Settlement date: | June 16
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40433BW20
|
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