By Wendy Van Sickle
Columbus, Ohio, Sept. 7 – HSBC USA Inc. priced $6.07 million of contingent income autocallable securities due Sept. 6, 2019 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.85% if the shares close at or above the 80% downside threshold level on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any of the first 11 determination dates.
The payout at maturity will be par plus the final coupon unless the shares finish below the downside threshold level, in which case investors will be fully exposed to the decline.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Facebook, Inc. (Symbol: FB)
|
| Amount: | $6,071,060
|
| Maturity: | Sept. 6, 2019
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| Coupon: | 8.85% per year, payable quarterly if Facebook shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
|
| Call: | At par plus contingent coupon if Facebook shares close at or above initial share price on any of the first 11 determination dates
|
| Initial share price: | $126.51
|
| Downside threshold: | $101.21, 80% of initial share price
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| Pricing date: | Sept. 2
|
| Settlement date: | Sept. 8
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 2.5%
|
| Cusip: | 40435B601
|
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