By Wendy Van Sickle
Columbus, Ohio, Dec. 29 – HSBC USA Inc. priced $4 million of autocallable barrier notes with contingent return due Dec. 27, 2019 linked to the common stock of Range Resources Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If the stock closes at or above its coupon barrier, 75% of its initial level, on a quarterly observation date, the notes will pay a contingent coupon that quarter at an annual rate of 7.8%.
The notes will be called at par plus the contingent coupon if the stock closes at or above its initial level on any monthly observation date.
The payout at maturity will be par plus the contingent coupon unless the stock finishes below the 60% trigger level, in which case investors will lose 1% for each 1% decline of the stock from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable barrier notes with contingent return
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| Underlying shares: | Range Resources Corp.
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| Amount: | $4 million
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| Maturity: | Dec. 27, 2019
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| Coupon: | 7.8% annualized, payable each month that stock closes at or above its coupon barrier on the observation date for that month
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless stock finishes below trigger level, in which case 1% loss for each 1% decline of stock from initial level
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| Call: | At par if each stock closes at or above initial level on any monthly observation date
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| Initial price: | $16.46
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| Coupon barrier: | $11.522; 70% of initial price
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| Trigger level: | $9.876; 60% of initial price
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| Pricing date: | Dec. 22
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| Settlement date: | Dec. 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40435FRA7
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