By Susanna Moon
Chicago, Oct. 18 – HSBC USA Inc. priced $4.1 million of trigger autocallable contingent yield notes due Oct. 18, 2019 linked to Dow Chemical Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes are guaranteed by JPMorgan Chase & Co.
The notes will pay a contingent quarterly coupon at an annual rate of 7.5% if the stock closes at or above its 71.5% coupon barrier on the observation date for that quarter.
The notes will be called at par if the stock closes at or above its initial level on any quarterly observation date after one year.
The payout at maturity will be par plus the contingent coupon unless the stock finishes below the 71.5% downside threshold, in which case investors will be fully exposed to any losses.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger autocallable contingent yield notes
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| Underlying stock: | Dow Chemical Co. (Symbol: DOW)
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| Amount: | $4,102,740
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| Maturity: | Oct. 18, 2019
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| Contingent coupon: | 8%, payable quarterly if stock close at or above 71.5% coupon barrier on quarterly observation date
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| Price: | Par of $10
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| Payout at maturity: | Par unless stock closes below 71.5% downside threshold, in which case will lose 1% for each 1% decline
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| Call: | At par plus contingent coupon if stock closes at or above initial level on any quarterly observation date beginning Oct. 16, 2017
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| Initial level: | $53.38
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| Downside threshold: | $38.17, 71.5% of initial level
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| Pricing date: | Oct. 14
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| Settlement date: | Oct. 19
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| Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40435B486
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