By William Gullotti
Buffalo, N.Y., May 15 – HSBC USA Inc. priced $2.61 million of autocallable contingent income barrier notes due Feb. 16, 2024 linked to the performance of the Energy Select Sector SPDR Fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 13.15% if the ETF closes at or above the coupon trigger level, 65% of the initial share price, on the relevant observation date.
The notes will be called at par plus the contingent coupon if the ETF closes at or above the initial share price on any quarterly observation date.
The payout at maturity will be par plus the final coupon unless the ETF finishes below its 65% barrier price, in which case investors will be fully exposed to the decline in the ETF from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying ETF: | Energy Select Sector SPDR Fund
|
| Amount: | $2,606,000
|
| Maturity: | Feb. 16, 2024
|
| Coupon: | 13.15%, payable quarterly if the ETF closes at or above coupon trigger level on the relevant observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus final coupon unless ETF finishes below barrier price, in which case full exposure to losses
|
| Call: | At par plus coupon if the ETF closes at or above initial price on any quarterly observation date
|
| Initial price: | $79.35
|
| Coupon trigger/barrier price: | $51.5775, 65% of initial price
|
| Strike date: | May 10
|
| Pricing date: | May 11
|
| Settlement date: | May 16
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 0.2%
|
| Cusip: | 40447AAZ7
|
|
|
|
|
© 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.
