New York, April 18 – HSBC USA Inc. priced $17.55 million of contingent income autocallable securities due April 15, 2027 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Investors will receive a coupon of 10.4%, paid quarterly, if the underlying stock closes at or above its 70% downside threshold on the related quarterly observation date.
The securities will be called automatically starting July 12 at par if the price of the underlying stock is greater than or equal to its initial price and on any subsequent quarterly review date.
At maturity the payout will be par unless the stock closes below its 70% downside threshold level in which case investors will be fully exposed to the decline of the stock.
HSBC Securities is the agent. Morgan Stanley Wealth Management will act as placement agent.
Issuer: | HSBC USA Inc.
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Issue: | Contingent income autocallable securities
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Underlying stock: | Bank of America Corp.
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Amount: | $17,548,000
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Maturity: | April 15, 2027
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Coupon: | 10.4%, paid quarterly, if the underlying stock closes at or above its 70% 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 stock
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Call: | Automatically starting July 12 at par if the price of the underlying stock is greater than or equal to its initial price and on any subsequent quarterly review date
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Initial level: | $35.79
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Downside threshold: | $25.053, 70% of initial level
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Pricing date: | April 12
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Settlement date: | April 17
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Agent: | HSBC Securities
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Distributor: | Morgan Stanley Wealth Management
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Fees: | 2.25%
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Cusip: | 40447AY81
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