By Wendy Van Sickle
Columbus, Ohio, July 31 – HSBC USA Inc. priced $10.08 million of contingent income autocallable securities due July 30, 2021 linked to the common stock of AT&T 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 10.25% if the stock closes at or above the 80% downside threshold on the observation date for that quarter.
The notes will be called at par if the stock closes at or above its initial level on any of the first three determination dates.
The payout at maturity will be par unless the underlying stock finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | AT&T Inc.
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| Amount: | $10,076,210
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| Maturity: | July 30, 2021
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| Coupon: | 10.25%, payable quarterly if stock closes at or above its 80% downside threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless stock finishes below 80% downside threshold, in which case full exposure to losses
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| Call: | At par if stock closes at or above initial level on any of the first three determination dates
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| Initial price: | $31.08
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| Trigger price: | $24.86, 80% of initial price
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| Pricing date: | July 27
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| Settlement date: | Aug. 1
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40435X645
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