By Kiku Steinfeld
Chicago, Sept. 10 – HSBC USA Inc. priced $3.16 million of autocallable contingent income barrier notes due March 4, 2022 linked to the common stock of United Continental Holdings Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay an 20% contingent coupon if the stock closes at or above the coupon trigger level, 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 the stock closes at or above the initial share price on any coupon observation date beginning in December.
The payout at maturity will be par plus any final coupon unless the stock finishes below its 50% final barrier price, in which case investors will be fully exposed to the decline in the 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 stock: | United Continental Holdings Inc.
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Amount: | $3,162,000
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Maturity: | March 4, 2022
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Coupon: | 20%, payable monthly if the stock closes at or above coupon trigger level on observation date for that month
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Price: | Par
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Payout at maturity: | Par plus any final coupon unless stock closes below final barrier price; in which case full exposure to losses
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Call: | At par plus coupon if the stock closes at or above initial price on any monthly observation date beginning in December
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Initial price: | $36.01
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Coupon trigger price: | 60% of initial price
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Final barrier price: | 50% of initial price
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Pricing date: | Sept. 1
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Settlement date: | Sept. 4
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 1.875%
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Cusip: | 40438CUD1
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