By Sarah Lizee
Olympia, Wash., Sept. 18 – HSBC USA Inc. priced $1.3 million of 9.4% autocallable yield notes due Sept. 18, 2020 linked to the least performing of the common stocks of AT&T Inc., Verizon Communications Inc. and Cisco Systems, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be automatically called at par if each stock closes at or above its initial share price on any quarterly call observation date.
If the notes are not called, the payout at maturity will be par unless any stock finishes below its trigger price, 70% of its initial share price, in which case investors will lose 1% for each 1% that the least-performing stock declines from its initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying stocks: | AT&T Inc., Verizon Communications Inc. and Cisco Systems, Inc.
|
| Amount: | $1.3 million
|
| Maturity: | Sept. 18, 2020
|
| Coupon: | 9.4%, payable quarterly
|
| Price: | Par
|
| Call: | Automatically at par if each stock closes at or above its initial share price on any quarterly call observation date
|
| Payout at maturity: | Par unless any stock finishes below trigger price, in which case 1% loss for each 1% that least-performing stock declines from initial share price
|
| Initial share prices: | $37.91 for AT&T, $59.96 for Verizon and $50.03 for Cisco
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| Trigger prices: | $26.537 for AT&T, $41.972 for Verizon and $35.021 for Cisco, or 70% of initial share prices
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| Pricing date: | Sept. 13
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| Settlement date: | Sept. 18
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 1%
|
| Cusip: | 40435UVW1
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