By Sarah Lizee
Olympia, Wash., June 3 – HSBC USA Inc. priced $694,000 of autocallable contingent income barrier notes due May 29, 2025 linked to the least performing of the common stocks of Etsy, Inc., Twilio Inc. and Teladoc Health, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at an annual rate of 25.3% if each stock closes at or above its coupon trigger price, 60% of the initial share price, on the observation date for that month.
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 after one year.
If the notes are not called, the payout at maturity will be par unless any stock finishes below its 50% 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: | Etsy, Inc., Twilio Inc. and Teladoc Health, Inc.
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Amount: | $694,000
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Maturity: | May 29, 2025
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Coupon: | Each month, 25.3% 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 after one year
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Initial share prices: | $74.08 for Etsy, $196.40 for Twilio and $164.47 for Teladoc
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Coupon trigger: | 60% of initial prices
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Trigger prices: | 50% of initial prices
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Pricing date: | May 26
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Settlement date: | May 29
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 0.25%
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Cusip: | 40438CJP7
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