By William Gullotti
Buffalo, N.Y., March 23 – HSBC USA Inc. priced $1.12 million of autocallable contingent income buffer notes due March 22, 2024 linked to the stock performance of Charles Schwab Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 19.25% if the stock closes at or above the coupon trigger, 70% of the initial share price, on the relevant observation date.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial share price on any monthly observation date after three months.
The payout at maturity will be par plus the final coupon if the stock finishes at or above its coupon trigger.
If the stock finishes below its coupon trigger but at or above its 50% buffer price, the payout will be par. Otherwise, investors will lose 2% for every 1% decline of the stock beyond 50%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income buffer notes
|
| Underlying stock: | Charles Schwab Corp.
|
| Amount: | $1,121,000
|
| Maturity: | March 22, 2024
|
| Coupon: | 19.25%, payable monthly if the stock closes at or above coupon trigger level on the relevant observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon if stock finishes at or above coupon trigger level; if stock finishes below coupon trigger level but at or above buffer price, par; otherwise, lose 2% for every 1% decline beyond 50%
|
| Call: | At par plus coupon if the stock closes at or above initial price on any monthly observation date after three months
|
| Initial price: | $56.41
|
| Coupon trigger: | $39.487; 70% of initial price
|
| Buffer price: | $28.205; 50% of initial price
|
| Pricing date: | March 17
|
| Settlement date: | March 22
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.375%
|
| Cusip: | 40441X2D1
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
