By Angela McDaniels
Tacoma, Wash., Nov. 19 - HSBC USA Inc. priced $4.48 million of contingent income securities due Nov. 20, 2023 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent quarterly payment at the rate of 5.5% per year, or $0.1375 per $10.00 principal amount of notes, if the index closes at or above the downside threshold level, 50% of the initial level, on the determination date for that quarter. Otherwise, no payment will be made that quarter.
If the final index level is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent quarterly payment. Otherwise, investors will be fully exposed to the decline of the index from the initial level.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income securities
|
| Underlying index: | S&P 500
|
| Amount: | $4,477,000
|
| Maturity: | Nov. 20, 2023
|
| Coupon: | Notes pay coupon at rate of 5.5% per year if index closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If index finishes at or above downside threshold level, par plus final contingent quarterly payment; otherwise, full exposure to index's decline
|
| Initial index level: | 1,798.18
|
| Downside threshold: | 899.09, or 50% of initial level
|
| Pricing date: | Nov. 15
|
| Settlement date: | Nov. 20
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 3.5%
|
| Cusip: | 40434B784
|
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