By Sarah Lizee
Olympia, Wash., Oct. 3 – HSBC USA Inc. priced $5.05 million of autocallable contingent income securities due April 2, 2019 linked to Hess Corp. stock, according to an FWP filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 15% if the stock closes at or above its 80% coupon barrier 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 its initial share price on any of the first five determination dates.
The payout at maturity will be par unless the stock finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is handling distribution.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable contingent income securities
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Underlying stock: | Hess Corp. (Symbol: HES)
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Amount: | $5,052,160
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Maturity: | April 2, 2019
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Coupon: | 15%, payable monthly if stock closes at or above 80% coupon barrier on observation date for that quarter
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Price: | Par
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Payout at maturity: | Par unless stock finishes below 80% downside threshold, in which case 1% loss per 1% decline
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Call: | At par if stock closes at or above initial level on any of the first five determination dates
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Initial level: | $71.58
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Downside threshold: | $57.26, 80% of initial level
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Pricing date: | Sept. 28
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Settlement date: | Oct. 3
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Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management handling distribution
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Fees: | 0.8%
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Cusip: | 40435X181
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