By Susanna Moon
Chicago, May 24 – HSBC USA Inc. priced $8.46 million of autocallable contingent income barrier notes due May 16, 2019 linked to the class A common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 10.5% if the stock closes at or above the 80% coupon barrier on the observation date for that quarter.
The notes will be called at par if the stock closes at or above its initial level on any of the first three determination dates.
The payout at maturity will be par unless the underlying stock finishes below its 80% trigger level, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying stock: | Facebook, Inc. (Symbol: FB)
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| Amount: | $8,459,910
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| Maturity: | May 16, 2019
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| Coupon: | 10.5%, payable quarterly if stock closes at or above 80% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless stock finishes below 80% trigger, in which case 1% loss per 1% decline
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| Call: | At par if stock closes at or above initial level on any of the first three determination dates
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| Initial level: | $186.99
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| Trigger levels: | $149.592, 80% of initial levels
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| Pricing date: | May 11
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| Settlement date: | May 16
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.25%
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| Cusip: | 40435M342
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