By Kiku Steinfeld
Chicago, Dec. 23 – HSBC USA Inc. priced $500,000 of autocallable contingent income barrier notes due Feb. 28, 2023 linked to the American Depositary Shares of Alibaba Group Holding Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
Each month, the notes will pay a contingent coupon at the annual rate of 16.4723% if the stock closes at or above the coupon trigger level, 70% of the initial share price, on the observation date for that month.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial share price on any quarterly call observation date after six months.
The payout at maturity will be par plus the final coupon unless the stock finishes below its 70% barrier price, in which case investors will be fully exposed to the decline in the stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stock: | Alibaba Group Holding Ltd. (Symbol: BABA)
|
| Amount: | $500,000
|
| Maturity: | Feb. 28, 2023
|
| Coupon: | 16.4723% per year, payable monthly if the stock closes at or above coupon trigger level on observation date for that period
|
|
|
| Price: | Par
|
| Payout at maturity: | Par pus final coupon unless stock closes below barrier price; in which case full exposure to losses
|
| Call: | At par plus coupon if the stock closes at or above initial price on any quarterly call observation date after six months
|
| Initial price: | $165.24
|
| Coupon trigger/barrier price: | $115.668, 70% of initial price
|
| Pricing date: | Aug. 26
|
| Settlement date: | Aug. 31
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40439JKH7
|
© 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.
