By Devika Patel
Knoxville, Tenn., Aug. 19 – HSBC USA Inc. priced $1.3 million of 10.25% autocallable yield notes due Aug. 31, 2017 linked to the three common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes the common stocks of Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co.
Interest is payable quarterly.
The notes will be called at par if each basket stock closes at or above its initial level on any quarterly review date.
The payout at maturity will be par unless any basket stock finishes below its 75% trigger level, in which case investors will receive a number of shares of the worst performing stock equal to the principal divided by the initial share price or, at the company’s option, the cash equivalent.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable yield notes
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| Underlying stocks: | Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co.
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| Amount: | $1.3 million
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| Maturity: | Aug. 31, 2017
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| Coupon: | 10.25%, payable quarterly
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below its 75% trigger level, in which case a number of shares of the worst performing stock equal to the principal divided by the initial share price or the cash equivalent
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| Call: | Automatically at par if stocks close at or above their initial levels on any quarterly review date
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| Initial share prices: | $15.15 for Bank of America, $46.63 for Citigroup and $65.89 for JPMorgan
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| Trigger share prices: | $11.36 for Bank of America, $34.97 for Citigroup and $49.42 for JPMorgan, 75% of initial levels
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| Pricing date: | Aug. 17
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| Settlement date: | Aug. 31
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1%
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| Cusip: | 40433UTL0
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