By Wendy Van Sickle
Columbus, Ohio, April 30 – HSBC USA Inc. priced $348,000 of trigger autocallable contingent yield notes due April 29, 2021 linked to the common stock of American Tower Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 8% per year if the shares close at or above the coupon barrier level, 80% of the initial share price, on the observation date for that quarter.
After six months, the notes will be automatically called at par of $10 plus the coupon if the shares close at or above the initial share price on any quarterly observation date.
If the notes are not called and the final share price is greater than or equal to the downside threshold level, 80% of the initial share price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.
Issuer: | HSBC USA Inc.
|
Issue: | Trigger autocallable contingent yield notes
|
Underlying stock: | American Tower Corp.
|
Amount: | $348,000
|
Maturity: | April 29, 2021
|
Contingent coupon: | 8%, payable quarterly if stock closes at or above coupon barrier level on observation date for that quarter
|
Price: | Par of $10
|
Payout at maturity: | Par unless stock finishes below downside threshold level, in which case 1% loss for each 1% decline from initial level
|
Call: | After six months, automatically at par if stock closes at or above initial level on any quarterly observation date other than the final one
|
Initial price: | $136.84
|
Coupon barrier/thresholds: | 80% of initial price
|
Pricing date: | April 26
|
Settlement date: | April 30
|
Agents: | UBS Financial Services Inc. and HSBC Securities (USA) Inc.
|
Fees: | 2%
|
Cusip: | 40435M524
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.