By Angela McDaniels
Tacoma, Wash., Aug. 6 – HSBC USA Inc. priced $500,000 of callable contingent income barrier notes due Aug. 6, 2020 linked to the common stock of WestRock Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay an 10.15% contingent coupon if the stock closes at or above the barrier price, 70% of the initial share price, on the observation date for that quarter.
The notes are callable at par quarterly.
The payout at maturity will be par unless the stock finishes below the 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: | Callable contingent income barrier notes
|
| Underlying stock: | WestRock Co. (Symbol: WRK)
|
| Amount: | $500,000
|
| Maturity: | Aug. 6, 2020
|
| Coupon: | 10.15%, payable quarterly if stock closes at or above barrier price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless stock finishes below barrier price, in which case full exposure to losses
|
| Call option: | At par quarterly
|
| Initial share price: | $37.26
|
| Barrier price: | $26.082, 70% of initial price
|
| Pricing date: | Aug. 1
|
| Trade date: | Aug. 2
|
| Settlement date: | Aug. 6
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.1%
|
| Cusip: | 40435UUX0
|
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