By Wendy Van Sickle
Columbus, Ohio, June 18 – HSBC USA Inc. priced $7.92 million of autocallable contingent income securities due June 14, 2024 linked to the worst performing of the stocks of McDonald's Corp. and NIKE, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 8.25% if each stock closes at or above its coupon barrier, 75% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon if each stock closes above its initial level on any quarterly redemption date.
The payout at maturity will be par unless any stock finishes below its 75% downside threshold, 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 the distributor.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent autocallable income securities
|
| Underlying stocks: | McDonald's Corp. and NIKE, Inc.
|
| Amount: | $7,921,000
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| Maturity: | June 14, 2024
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| Coupon: | 8.25% per year, payable each quarter if each stock closes at or above coupon barrier on determination date for that period
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price of least performing stock is greater than or equal to downside threshold level, par; otherwise, full exposure to decline of worst performer
|
| Call: | Par plus the contingent coupon if each stock closes above its initial level on any quarterly redemption date
|
| Initial levels: | $236.93 for McDonald’s, $131.94 for NIKE
|
| Coupon barrier levels: | $177.6975 for McDonald’s, $98.955 for NIKE; 75% of initial levels
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| Downside thresholds: | $177.6975 for McDonald’s, $98.955 for NIKE; 75% of initial levels
|
| Pricing date: | June 11
|
| Settlement date: | June 16
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| Agent: | HSBC Securities (USA) Inc.
|
| Distributor: | Morgan Stanley Smith Barney LLC
|
| Fees: | 2.5%
|
| Cusip: | 40439K706
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