By Susanna Moon
Chicago, Jan. 22 – HSBC USA Inc. priced $1.2 million of autocallable contingent income barrier notes due July 19, 2021 linked to the common stocks of CVS Health Corp. and Walgreens Boots Alliance, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 10.75% if each stock closes at or above the 75% coupon barrier on the observation date for that quarter.
The notes will be called at par 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 its 75% trigger level, in which case investors will be fully exposed to any losses 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: | CVS Health Corp. (Symbol: CVS) and Walgreens Boots Alliance, Inc. (Symbol: WBA)
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Amount: | $1.2 million
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Maturity: | July 19, 2021
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Coupon: | 10.75%, payable quarterly if each stock closes at or above 75% coupon barrier on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par unless either stock falls below 75% trigger, in which case 1% loss per 1% decline of worse performing stock
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Call: | At par if each stock closes at or above initial level on any determination date beginning Jan. 16, 2019
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Initial levels: | $79.44 for CVS, $76.03 for Walgreens
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Trigger levels: | $59.58 for CVS, $57.0225 for Walgreens, 75% of initial levels
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Pricing date: | Jan. 16
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Settlement date: | Jan. 19
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.85%
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Cusip: | 40435FRQ2
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