By Wendy Van Sickle
Columbus, Ohio, Jan. 19 – HSBC USA Inc. priced $1.94 million of contingent income autocallable securities due Sept. 1, 2022 linked to the common stock of Nike, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes pay a contingent quarterly coupon at an annual rate of 7.25% if the stock closes at or above its coupon barrier price, 80% of its initial price, on the corresponding observation date.
The notes will be called at par plus coupon if the stock closes at or above its initial share price on any quarterly observation date.
If the notes are not called, the payout at maturity will be par plus the final coupon unless the stock finishes below its 80% trigger price, in which case investors will be fully exposed to the decline.
HSBC Securities (USA) Inc. is the agent and Morgan Stanley Wealth Management is acting as the distributor.
Issuer: | HSBC USA Inc.
|
Issue: | Contingent income autocallable securities
|
Underlying stock: | Nike, Inc.
|
Amount: | $1,937,250
|
Maturity: | Sept. 1, 2022
|
Coupon: | 7.25% annual rate, payable quarterly if stock closes at or above trigger price on the corresponding observation date
|
Price: | Par of $10
|
Payout at maturity: | Par plus the final coupon unless stock finishes below trigger price, in which case full exposure to decline
|
Call: | At par plus coupon if stock closes at or above initial share price on any quarterly observation date
|
Initial share price: | $167.58
|
Coupon barrier price: | $134.064; 80% of initial share price
|
Trigger price: | $134.064; 80% of initial share price
|
Pricing date: | Aug. 27
|
Settlement date: | Sept. 1
|
Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management as distributor
|
Fees: | 1.75%
|
Cusip: | 40439K342
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.