By Wendy Van Sickle
Columbus, Ohio, July 31 – HSBC USA Inc. priced $3.04 million of autocallable contingent income barrier notes due Jan. 27, 2026 linked to the common stock of Block, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 12%, paid monthly, if the underlying stock closes at or above its 60% barrier level on the related monthly observation date.
The securities will be called automatically starting Oct. 24 at par if the level of the stock is greater than or equal to 90% of its initial level and on any subsequent monthly observation date.
The payout at maturity will be par if the stock ends at or above its 60% barrier value. Otherwise, investors will lose 1% for every 1% that the stock declines, payable as shares.
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: | Block, Inc.
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Amount: | $3,037,000
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Maturity: | Jan. 27, 2026
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Coupon: | 12% annual rate, paid monthly, if the underlying stock closes at or above its 60% barrier level on the related monthly observation date
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Price: | Par
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Payout at maturity: | If stock finishes at or above the barrier level par; 1% loss for every 1% that stock declines if it ends below barrier value, payable in shares
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Call: | Automatically starting Oct. 24 at par if the level of the stock is greater than or equal to 90% of its initial level and on any subsequent monthly observation date
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Initial level: | $77.14
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Coupon barrier: | $46.284, 60% of initial level
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Barrier level: | $46.284, 60% of initial level
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Pricing date: | July 24
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Settlement date: | July 27
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 3.5%
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Cusip: | 40428HXH0
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