By Marisa Wong
Morgantown, W.Va., Sept. 23 – HSBC USA Inc. priced $7.96 million of contingent income autocallable securities due Sept. 26, 2022 linked to the worst performing of the Nikkei 225 index, the S&P 500 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.05% if each index closes at or above the 75% coupon barrier level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any of the first 27 quarterly determination dates.
The payout at maturity will be par plus the final coupon unless any index finishes below the 55% downside threshold level, in which case investors will be fully exposed to any losses of the worst performing index.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income auto-callable securities
|
| Underlyings: | Nikkei 225 index, S&P 500 index and Euro Stoxx 50 index
|
| Amount: | $7,957,240
|
| Maturity: | Sept. 26, 2022
|
| Coupon: | 10.05% annualized for each quarter that each index closes at or above barrier level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if each index finishes at or above downside threshold level; otherwise, full exposure to any losses of worst performing index
|
| Call: | At par plus contingent payment if each index closes at or above initial level on any of first 27 determination dates
|
| Initial levels: | 1,966.97 for S&P and 3,184.72 for Euro Stoxx; closing level on Sept. 24 for Nikkei
|
| Coupon barriers: | 75% of initial levels
|
| Downside thresholds: | 55% of initial levels
|
| Pricing date: | Sept. 21
|
| Settlement date: | Sept. 24
|
| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management handling distribution
|
| Fees: | 3.5%
|
| Cusip: | 40434K867
|
|
|
© 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.
