By Angela McDaniels
Tacoma, Wash., July 26 – HSBC USA Inc. priced $3.09 million of trigger autocallable contingent yield notes due July 25, 2019 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 8% per year if Facebook shares close at or above the downside threshold level, 68% of the initial share price, on the observation date for that quarter.
After six months, the notes will be automatically called at par of $10 if Facebook shares close at or above the initial share price on any quarterly observation date.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying stock: | Facebook, Inc. (Symbol: FB)
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| Amount: | $3,088,750
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| Maturity: | July 25, 2019
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| Coupon: | Each quarter, notes pay contingent coupon at rate of 8% per year if Facebook shares close at or above downside threshold level on observation date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | If notes are not called and final share price is greater than or equal to downside threshold level, par; otherwise, 1% loss for every 1% that final share price is less than initial share price
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| Call: | After six months, automatically at par if Facebook shares close at or above initial share price on any quarterly observation date
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| Initial share price: | $121.00
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| Downside threshold: | $82.28, 68% of initial share price
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| Pricing date: | July 22
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| Settlement date: | July 27
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| Underwriter: | HSBC Securities (USA) Inc.
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| Agent: | UBS Financial Services Inc.
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| Fees: | 2%
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| Cusip: | 40434V376
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