By Wendy Van Sickle
Columbus, Ohio, May 22 – HSBC USA Inc. priced $2.1 million of autocallable contingent income barrier notes due May 22, 2020 linked to the least performing of the American Depositary Shares of Alibaba Group Holding Ltd., the class A common stock of Parsley Energy, Inc. and the common stock of Pioneer Natural Resources Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 20% if each stock closes at or above its coupon trigger, 70% of its initial share price, on the observation date for that quarter.
The notes will be automatically called at par plus the contingent coupon if each stock closes at or above its initial share price on any quarterly call observation date.
The payout at maturity will be par plus the final coupon unless any stock finishes below its 70% barrier, in which case investors will receive a number of shares of the worst-performing stock equal to $1,000 divided by the initial 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: | Parsley Energy, Inc., Pioneer Natural Resources Co. and Alibaba Group Holding Ltd.
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| Amount: | $2.1 million
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| Maturity: | May 22, 2020
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| Coupon: | 20%, payable quarterly if each stock closes at or above trigger level on determination date for that period
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, number of shares of the worst-performing stock equal to $1,000 divided by initial share price
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| Initial level: | $32.14 for Pioneer, $212.31 for Parsley and $196.02 for Alibaba
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| Trigger/barrier level: | $22.498 for Pioneer, 148.617 for Parsley and $137.214 for Alibaba, 70% of initial levels
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| Pricing date: | May 17
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| Settlement date: | May 22
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40435M243
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