New York, May 16 – HSBC USA Inc. priced $8.46 million of contingent income autocallable securities due May 16, 2019 linked to the class A 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 annualized rate of 10.5% if the stock closes at or above the 80% downside threshold on the applicable quarterly observation date.
The notes will be called at par if the stock closes at or above its initial price on any of the first three quarterly determination dates.
The payout at maturity will be par unless the stock finishes below its downside threshold, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Facebook, Inc. class A
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| Amount: | $8,459,910
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| Maturity: | May 16, 2019
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| Coupon: | 10.5%, payable each quarter that stock closes at or above downside threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless stock finishes below downside threshold, in which case 1% loss per 1% decline
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| Call: | At par if index closes at or above initial price on any of the first three quarterly determination dates
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| Initial level: | $186.99
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| Downside threshold: | $149.592, 80% of initial level
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| Pricing date: | May 11
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| Settlement date: | May 16
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 1.75%
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| Cusip: | 40435M342
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