By Susanna Moon
Chicago, April 27 – HSBC USA Inc. priced $2 million of autocallable contingent income barrier notes due April 27, 2020 linked to the least performing of the common stocks of Bank of America Corp., Concho Resources Inc. and the RSP Permian, 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 15.5% 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 of the first 11 determination dates.
The payout at maturity will be par unless any underlying 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 underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying stock: | Bank of America Corp. (Symbol: BAC), Concho Resources Inc. (Symbol: CXO) and RSP Permian, Inc. (Symbol: RSPP)
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| Amount: | $2 million
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| Maturity: | April 27, 2020
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| Coupon: | 15.5%, 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 finishes 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 of the first 11 determination dates
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| Initial level: | $30.26 for BofA, $156.36 for Concho and $48.94 for RSP
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| Trigger levels: | $21.182 for BofA, $109.452 for Concho and $34.258 for RSP, 70% of initial levels
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| Pricing date: | April 20
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| Settlement date: | April 25
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2%
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| Cusip: | 40435M565
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