By Wendy Van Sickle
Columbus, Ohio, June 8 – HSBC USA Inc. priced $14.22 million of contingent income autocallable securities due June 6, 2025 linked to Ford Motor Co. common stock, according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 14.1%, paid quarterly, if the underlying stock closes at or above its 50% downside threshold on the related quarterly observation date.
The securities will be called automatically at par if the price of the underlying stock is greater than or equal to its initial price on any quarterly call determination date.
At maturity the payout will be par unless the stock closes below its 50% downside threshold in which case investors will be fully exposed to the decline of the stock.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management as distributor.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Ford Motor Co.
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| Amount: | $14,220,680
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| Maturity: | June 6, 2025
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| Coupon: | 14.1% annual rate, paid quarterly, if the underlying stock closes at or above its 50% downside threshold on the related quarterly observation date
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| Price: | Par
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| Payout at maturity: | Par unless the stock closes below its downside threshold level in which case investors will be fully exposed to the decline in the underlying stock
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| Call: | Automatically at par if the price of the underlying stock is greater than or equal to its initial price on any quarterly call determination date
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| Initial level: | $13.50
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| Downside threshold: | $6.75, 50% of initial level
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| Pricing date: | June 3
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| Settlement date: | June 8
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| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management as distributor
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| Fees: | 2.5%
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| Cusip: | 40439N718
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