By Marisa Wong
Morgantown, W.Va., Jan. 19 – HSBC USA Inc. priced $1.91 million of autocallable contingent income barrier notes due Jan. 22, 2019 linked to the least performing of the common stocks of Goldman Sachs Group, Inc., Schlumberger NV and WPX Energy, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at a rate of 25.5% per year if each stock closes at or above its trigger level, 70% of its initial share price, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date.
The payout at maturity will be par plus the final coupon unless any stock finishes below its trigger level, in which case investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by the initial share price of that 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: | Goldman Sachs Group, Inc. (Symbol: GS), Schlumberger NV (Symbol: SLB) and WPX Energy, Inc. (Symbol: WPX)
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| Amount: | $1.91 million
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| Maturity: | Jan. 22, 2019
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| Coupon: | 25.5%, payable each quarter that each stock closes at or above trigger level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, a number of shares of the worst performing stock equal to $1,000 divided by the initial price of that stock
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| Call: | At par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date
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| Initial levels: | $244.30 for Goldman, $84.82 for Schlumberger and $13.72 for WPX
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| Trigger levels: | $171.01 for Goldman, $59.374 for Schlumberger and $9.604 for WPX; 70% of initial prices
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| Pricing date: | Jan. 13
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| Settlement date: | Jan. 19
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.25%
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| Cusip: | 40435C666
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