By Tali Rackner
Minneapolis, March 16 – HSBC USA Inc. priced $3.2 million of autocallable notes due March 3, 2021 linked to the common stock of Incyte Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Beginning May 29, if Incyte shares finish at or above the 85% threshold price on any quarterly call date, the notes will automatically be redeemed at par of $10 plus a return of 15% per annum.
If the final share price is greater than or equal to the initial price, the payout at maturity will be $14.50 per security.
Investors will receive par if the shares decline by up to 15% and will be fully exposed to any losses beyond 15%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable notes
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| Underlying stock: | Incyte Corp. (Symbol: INCY)
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| Amount: | $3.2 million
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| Maturity: | March 3, 2021
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| Price: | Par of $10
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| Payout at maturity: | $14.50 per security if stock finishes positive; par if stock falls by up to 15%; full exposure to decline beyond 15%
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| Call: | Automatically at par plus 15% annualized redemption payment if shares close at or above threshold price on any quarterly call date, beginning May 29
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| Initial price: | $85.16
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| Threshold price: | $72.386; 85% of initial price
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| Pricing date: | Feb. 28
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| Settlement date: | March 5
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.3%
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| Cusip: | 40435M839
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