By Susanna Moon
Chicago, Nov. 21 – HSBC USA Inc. priced $1.95 million of autocallable contingent income barrier notes due Nov. 18, 2024 linked to the lesser performing of the common stocks of Allergan plc and Merck & Co., Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a quarterly contingent coupon at an annual rate of 7.6% if each stock closes at or above the 60% barrier level on the review date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if each stock closes at or above its initial level on any determination date after one year.
The payout at maturity will be par unless either stock finishes below the 60% barrier level, in which case investors will lose 1% for each 1% index decline of the worse performing stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stocks: | Allergan plc (Symbol: AGN) and Merck & Co., Inc. (Symbol: MRK)
|
| Amount: | $1.95 million
|
| Maturity: | Nov. 18, 2024
|
| Coupon: | 7.6% per year, payable quarterly if each stock closes at or above barrier on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If each stock finishes at or above barrier, par; otherwise, full exposure to decline of worse performing stock
|
| Call: | At par if each stock closes at or above initial level on any determination date beginning Nov. 14, 2018
|
| Initial levels: | $171.82 for Allergan and $54.99 for Merck
|
| Barrier levels: | $103.09 for Allergan and $32.99 for Merck, 60% of initial levels
|
| Pricing date: | Nov. 14
|
| Settlement date: | Nov. 17
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 3.35%
|
| Cusip: | 40435FLS4
|
|
|
|
|
© 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.
