By Susanna Moon
Chicago, Feb. 23 – HSBC USA Inc. priced $3.02 million of contingent income autocallable securities due Aug. 27, 2019 linked to least performing of the common stocks of Facebook, Inc., Royal Caribbean Cruises Ltd. and Boeing Co., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 18.25% if each stock closes at or above the 70% coupon barrier on a determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if each stock closes at or above the initial share price on any interest payment date beginning May 24.
The payout at maturity will be par unless any stock finishes below its 70% barrier level, in which case investors will be fully exposed to any losses of the worst performing stock.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stocks: | Facebook, Inc. (Symbol: FB), Royal Caribbean Cruises Ltd. (Symbol: RCL) and Boeing Co. (Symbol: BA)
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| Amount: | $3.02 million
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| Maturity: | Aug. 27, 2019
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| Coupon: | 18.25% per year, payable quarterly if each stock closes at or above 70% coupon barrier level on determination date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | If each stock finishes at or above downside threshold, par; otherwise, full exposure to any losses of the worst performing stock
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| Call: | At par plus contingent coupon if each stock closes at or above initial share price on any interest payment date beginning May 24
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| Initial levels: | $133.53 for Facebook, $95.21 for Royal Caribbean and $172.71 for Boeing
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| Barriers: | $93.471 for Facebook, $66.647 for Royal Caribbean and $120.897 for Boeing, 70% of initial levels
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| Pricing date: | Feb. 17
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| Settlement date: | Feb. 27
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Smith Barney LLC
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| Fees: | 1.75%
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| Cusip: | 40433US49
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