By Susanna Moon
Chicago, June 23 – HSBC USA Inc. priced $3.35 million of autocallable contingent income barrier notes due June 7, 2024 linked to the lesser performing of the common stocks of Cisco Systems, Inc. and Intel Corp., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.55% if each stock closes at or above its trigger level, 60% of its initial level, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date.
The payout at maturity will be par plus the final coupon unless either stock finishes below its 60% trigger level, in which case investors will be fully exposed to the decline of the worse performing stock.
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 stocks: | Cisco Systems, Inc. (Symbol: CSCO) and Intel Corp. (Symbol: INTC)
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| Amount: | $3.35 million
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| Maturity: | June 7, 2024
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| Coupon: | 8.55%, payable each quarter that each stock closes at or above trigger level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If each stock finishes at or above trigger level, par; otherwise, full exposure to loss of least performing stock
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| Call: | At par plus the contingent coupon if each stock closes at or above its initial share price on any coupon observation date beginning Dec. 4, 2017
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| Initial levels: | $31.98 for Cisco and $36.32 for Intel
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| Trigger levels: | $19.188 for Cisco and $21.792 for Intel; 60% of initial prices
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| Pricing date: | June 2
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| Settlement date: | June 7
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.85%
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| Cusip: | 40433U5Z5
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