By Kiku Steinfeld
Chicago, Oct. 4 – HSBC USA Inc. priced $500,000 of autocallable contingent income barrier notes with memory coupon due Feb. 20, 2024 linked to the least performing of the stocks of Medtronic plc, Eli Lilly and Co. and Abbott Laboratories, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 11.05% if each stock closes at or above its coupon trigger level, 65% of its initial level, on the observation date for that period, plus any previously unpaid coupon.
The notes will be called at par plus the coupon if each stock closes at or above its initial level on any quarterly call observation date after six months.
If the notes are not called and each stock finishes at or above its 65% barrier value, the payout at maturity will be par plus any final coupon. Otherwise, investors will be fully exposed to the decline of the least-performing stock.
HSBC Securities (USA) Inc. is the agent.
Issuer: | HSBC USA Inc.
|
Issue: | Autocallable contingent income barrier notes with memory coupon
|
Underlying stocks: | Medtronic plc, Eli Lilly and Co. and Abbott Laboratories
|
Amount: | $500,000
|
Maturity: | Feb. 20, 2024
|
Coupon: | 11.05% per year, payable quarterly if each stock closes at or above coupon trigger on observation date for that period, plus any previously unpaid coupon
|
Price: | Par
|
Payout at maturity: | If each stock finishes at or above barrier level, par plus any final coupon; otherwise, full exposure to decline of least-performing stock
|
Call: | At par plus coupon if each stock closes at or above initial level on any quarterly call observation date after six months
|
Initial levels: | $102.31 for Medtronic, $234.69 for Lily, $122.78 for Abbott
|
Coupon triggers: | 65% of initial levels
|
Barrier levels: | 65% of initial levels
|
Pricing date: | Feb. 14
|
Settlement date: | Feb. 17
|
Agent: | HSBC Securities (USA) Inc.
|
Fees: | 1%
|
Cusip: | 40439JA39
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.