By Susanna Moon
Chicago, Sept. 16 – HSBC USA Inc. priced $15.18 million of contingent income autocallable securities due Sept. 14, 2018 linked to Apple Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 15.5% if the shares close at or above the 75% barrier level on the determination date for that month.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any of the first five determination dates.
The payout at maturity will be par plus the final coupon unless the shares finish below the 75% barrier level, in which case investors will receive a number of Apple shares equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Apple Inc. (Symbol: AAPL)
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| Amount: | $15,178,800
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| Maturity: | Sept. 14, 2018
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| Coupon: | 15.5% annualized for each month that stock closes at or above barrier level on determination date for that month
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| Price: | Par of $10
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| Payout at maturity: | Par plus contingent coupon if stock finishes at or above barrier level; otherwise, number of Apple shares equal to $10 divided by the initial price
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| Call: | At par plus contingent payment if stock closes at or above initial share price on any of the first five determination dates
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| Initial level: | $114.21
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| Barrier level: | 75% of initial level
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| Pricing date: | Sept. 11
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| Settlement date: | Sept. 16
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| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management handling distribution
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| Fees: | 0.75%
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| Cusip: | 40434K875
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