By Kiku Steinfeld
Chicago, June 8 – HSBC USA Inc. priced $7.06 million of contingent income autocallable securities due May 12, 2022 linked to the common stock of General Motors Co., according to a 424B2 filing with the Securities and Exchange Commission.
If the stock closes at or above the coupon barrier level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 9.1%.
The notes will be called at par of $10 plus the contingent coupon if the stock closes at or above its initial share price on any quarterly determination date other than the final determination date.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
HSBC Securities (USA) Inc. and Morgan Stanley Wealth Management are the agents.
Issuer: | HSBC USA Inc.
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Issue: | Contingent income autocallable securities
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Underlying stock: | General Motors Co.
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Amount: | $7,063,500
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Maturity: | May 12, 2022
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Coupon: | 9.1% per year, payable quarterly if stock closes at or above 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 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
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Call: | At par plus contingent coupon if stock closes at or above initial share price on any quarterly determination date other than the final determination date
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Initial share price: | $58.99
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Coupon barrier: | $44.2425, 75% of initial share price
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Downside threshold: | $44.2425, 75% of initial share price
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Pricing date: | May 7
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Settlement date: | May 12
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Agents: | HSBC Securities (USA) Inc. and Morgan Stanley Wealth Management
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Fees: | 1.75%
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Cusip: | 40438U275
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