By Susanna Moon
Chicago, Jan. 23 – HSBC USA Inc. priced $2.12 million of autocallable contingent income barrier notes due Jan. 24, 2020 linked to the common stocks of Diamondback Energy, Inc., Morgan Stanley and Pioneer Natural Resources Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 15.75% if each stock closes at or above the 70% 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.
The payout at maturity will be par unless any stock finishes below its 70% trigger level, in which case investors will be fully exposed to any losses of the worst 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: | Diamondback Energy, Inc. (Nasdaq: FANG), Morgan Stanley (NYSE: MS) and Pioneer Natural Resources Co. (NYSE: PXD)
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| Amount: | $2.12 million
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| Maturity: | Jan. 24, 2020
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| Coupon: | 15.75%, payable quarterly if each stock closes at or above 70% coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless any stock falls below 70% trigger, in which case 1% loss per 1% decline of worst performing stock
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| Call: | At par if each stock closes at or above initial level on any determination date
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| Initial levels: | $127.57 for Diamondback, $57.46 for Morgan Stanley and $183.17 for Pioneer
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| Trigger levels: | $89.299 for Diamondback, $40.222 for Morgan Stanley and $128.219 for Pioneer, 70% of initial levels
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| Pricing date: | Jan. 19
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| Settlement date: | Jan. 24
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40435J430
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