By Susanna Moon
Chicago, April 27 – HSBC USA Inc. priced $19.07 million of contingent income autocallable securities due April 27, 2018 linked to Blackstone Group LP shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Blackstone shares close at or above the barrier level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annual rate of 8.55%.
The notes will be called at par of $10 plus the contingent coupon if Blackstone shares close at or above the initial share price on any of the first 11 quarterly determination dates.
If the stock finishes at or above the 80% barrier level, the payout at maturity will be par plus the final contingent coupon.
Otherwise, investors will receive a number of Blackstone shares equal to $10 divided by the initial share price or, at the issuer’s option, a cash equivalent.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
Issuer: | HSBC USA Inc.
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Issue: | Contingent income autocallable securities
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Underlying stock: | Blackstone Group LP (Symbol: BX)
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Amount: | $19,072,140
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Maturity: | April 27, 2018
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Coupon: | 8.55% per year, payable quarterly if Blackstone shares close at or above 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 stock finishes at or above barrier level, par plus final contingent coupon; otherwise, number of Blackstone shares equal to $10 divided by initial level
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Call: | At par plus contingent coupon if Blackstone shares close at or above initial share price on any of first 11 quarterly determination dates
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Initial level: | $41.41
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Barrier level: | $33.13, 80% of initial share price
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Pricing date: | April 24
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Settlement date: | April 29
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Agent: | HSBC Securities (USA) Inc.
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Distribution: | Morgan Stanley Smith Barney LLC
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Fees: | 2%
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Cusip: | 40434G528
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