By Sarah Lizee
Olympia, Wash., Sept. 15 – HSBC USA Inc. priced $5.26 million of 28.5% autocallable yield notes due Sept. 10, 2021 linked to the common stock of Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
After six months, the notes will be called at par plus the interest payment if the stock closes at or above its initial level on any quarterly review date.
The payout at maturity will be par plus the final interest payment unless the stock ever closes below its 50% trigger level during the life of the notes and the stock finishes below its initial level, in which case investors will lose 1% for each 1% decline of the stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying stock: | Tesla, Inc.
|
| Amount: | $5,258,000
|
| Maturity: | Sept. 10, 2021
|
| Coupon: | 28.5%, payable quarterly
|
| Price: | Par
|
| Call: | Automatically at par plus coupon if stock closes at or above initial level on a quarterly observation date after six months
|
| Payout at maturity: | Par plus final coupon unless stock ever closes below its trigger level during the life of the notes and stock finishes below its initial level, in which case full exposure to decline of stock
|
| Initial level: | $418.32
|
| Trigger level: | 50% of initial levels
|
| Pricing date: | Sept. 8
|
| Settlement date: | Sept. 11
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.25%
|
| Cusip: | 40428HPY2
|
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