By Tali Rackner
Norfolk, Va., Jan. 20 – HSBC USA Inc. priced $5.33 million of contingent income autocallable securities due July 18, 2017 linked to the common equity securities of Blackstone Group LP, according to a 424B2 filing with the Securities and Exchange Commission.
If Blackstone equity securities close at or above the downside threshold level, 80% of the initial price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of 12.5%.
The notes will be called at par of $10 plus the contingent coupon if Blackstone equity securities close at or above the initial price on any of the first five monthly determination dates.
If the final price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final price is less than the initial price.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management 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: | $5,331,050
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| Maturity: | July 18, 2017
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| Coupon: | 12.5% per year, payable monthly if Blackstone shares close at or above downside threshold level on determination date for that month
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| Price: | Par of $10.00
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final share price is less than initial share price
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| Call: | At par plus contingent coupon if Blackstone shares close at or above initial share price on any of the first five determination dates
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| Initial share price: | $30.09
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| Downside threshold: | $24.072, 80% of initial share price
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| Pricing date: | Jan. 13
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| Settlement date: | Jan. 19
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 1.25%
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| Cusip: | 40435C773
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