By Devika Patel
Knoxville, Tenn., Sept. 20 – HSBC USA Inc. priced $2.53 million of autocallable contingent income barrier notes due Sept. 25, 2017 linked to the common stocks of Bank of America Corp., Walt Disney Co. and Netflix, 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 18.5% if each stock closes at or above the barrier level, 70% of the initial level, on the determination 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.
If the notes are not called and each stock finishes at or above the 70% trigger level, the payout at maturity will be par. Otherwise, investors will receive a number of shares of the least-performing stock equal to the principal amount divided by the initial price of the least-performing stock.
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: | Bank of America Corp. (BAC), Walt Disney Co. (DIS) and Netflix, Inc. (NFLX)
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| Amount: | $2.53 million
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| Maturity: | Sept. 25, 2017
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| Coupon: | 18.5%, payable quarterly if each stock closes at or above barrier level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If each finishes at or above 70% trigger level, par; otherwise, a number of shares of the least-performing stock equal to the principal amount divided by the initial price of the least-performing stock
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| Initial levels: | $15.49 for BofA, $92.56 for Disney and $99.48 for Netflix
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| Barrier/trigger levels: | $10.843 for BofA, $64.792 for Disney and $69.636 for Netflix, 70% of initial prices
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| Pricing date: | Sept. 16
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| Settlement date: | Sept. 23
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.25%
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| Cusip: | 40433UVP8
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