By Susanna Moon
Chicago, Nov. 27 – HSBC USA Inc. priced $650,000 of autocallable notes with step-up premium due Dec. 5, 2018 linked to Celgene Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will be called at par plus an annualized call premium of 16.5% if Celgene shares close at or above the initial share price on any quarterly observation date.
If the notes are not called, the payout at maturity will be par unless the stock finishes below its 70% trigger level, in which case investors will be fully exposed to any losses.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the underwriters. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable notes with step-up premium
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| Underlying stock: | Celgene Corp. (Symbol: CELG)
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| Amount: | $650,000
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| Maturity: | Dec. 5, 2018
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | Par unless stock finishes below 70% trigger level, in which case 1% loss per 1% decline
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| Call: | At par plus 16.5% annualized if stock closes at or above initial level on any quarterly observation date
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| Initial share price: | $104.10
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| Trigger level: | $72.87, 70% of initial share price
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| Pricing date: | Nov. 17
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| Settlement date: | Nov. 22
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| Underwriter: | HSBC Securities (USA) Inc with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents
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| Fees: | 1%
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| Cusip: | 40435FLZ8
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