By Wendy Van Sickle
Columbus, Ohio, June 12 – HSBC USA Inc. priced $3.06 million of autocallable contingent income barrier notes due June 14, 2021 linked to the least performing of the common stocks of Facebook, Inc. and Walt Disney 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 16.2% if each stock closes at or above its coupon trigger price, 70% of the 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.
If the notes are not called, the payout at maturity will be par unless any stock finishes below its 70% trigger level, in which case investors will be fully exposed to the decline 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: | Facebook, Inc., Walt Disney Co.
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| Amount: | $3.06 million
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| Maturity: | June 14, 2021
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| Coupon: | Each quarter, 16.2% per year if stocks close at or above coupon trigger price on observation date
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| Price: | Par
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| Payout at maturity: | If stocks finish at or above trigger price, par; otherwise, full exposure to decline of least performing stock
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| Call: | Automatically 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 share prices: | $238.67 for Facebook, $123.89 for Disney
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| Coupon trigger: | 70% of initial prices
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| Trigger prices: | 70% of initial prices
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| Pricing date: | June 9
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| Settlement date: | June 12
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.25%
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| Cusip: | 40438J635
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