By Angela McDaniels
Tacoma, Wash., March 27 – HSBC USA Inc. priced $1 million of autocallable contingent coupon buffered securities with trigger upside and downside participation due March 29, 2022 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
A knock-out event will occur if the index closes below its coupon trigger, 90% of its initial level, on any trading day on or prior to March 26, 2018.
Each month, the notes will pay a contingent coupon at the rate of 7.75% per year if a knock-out event does not occur that month. If a knock-out event does occur, no contingent coupon will be paid for that month or any subsequent month.
If a knock-out event has not occurred, the notes will be automatically called and investors will receive par plus the final contingent coupon on March 29, 2018.
If a knock-out event has occurred, the notes will not be called, and the payout at maturity will be par plus 1.111 times the sum of the index return and 10%. This payout will be greater than par if the index return is greater than negative 10%.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent coupon buffered securities with trigger upside and downside participation
|
| Underlying index: | S&P 500
|
| Amount: | $1 million
|
| Maturity: | March 29, 2022
|
| Knock-out event: | Index closes below coupon trigger on any trading day on or prior to March 26, 2018
|
| Coupon: | 7.75% per year, payable monthly if knock-out event does not occur that month; if knock-out event does occur, no contingent coupon will be paid for that month or any subsequent month
|
| Price: | Par
|
| Payout at maturity: | Par plus 1.111 times sum of index return and 10%
|
| Call: | Automatically if knock-out event has not occurred, in which case investors will receive par plus final contingent coupon on March 29, 2018
|
| Initial index level: | 2,343.98
|
| Coupon trigger: | 2,109.582, or 90% of initial level
|
| Pricing date: | March 24
|
| Settlement date: | March 29
|
| Underwriters: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40433UY83
|
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