By Wendy Van Sickle
Columbus, Ohio, Feb. 8 – HSBC USA Inc. priced $14.62 million of trigger autocallable contingent yield notes due Feb. 8, 2022 linked to the common stock of Ford Motor Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the rate of 10% per year if Ford shares close at or above the downside threshold level, 64.75% of the initial share price, on the observation date for that month.
After one year, the notes will be automatically called at par of $10 if Ford shares close at or above the initial share price on any 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 plus the contingent coupon, if any. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable contingent yield notes
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| Underlying stock: | Ford Motor Co.
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| Amount: | $14,621,450
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| Maturity: | Feb. 8, 2022
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| Contingent coupon: | 10%, payable monthly if stock closes at or above downside threshold on observation date for that month
|
| Price: | Par of $10
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| Payout at maturity: | Par unless stock finishes below downside threshold level, in which case 1% loss for each 1% decline from initial level
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| Call: | After one year, automatically at par if stock closes at or above initial level on any monthly observation date other than the final one
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| Initial price: | $12.56
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| Downside threshold: | $8.13, 64.75% of initial price
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| Pricing date: | Feb. 3
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| Settlement date: | Feb. 8
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| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40435C260
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