By Susanna Moon
Chicago, April 28 – HSBC USA Inc. priced $1.5 million of contingent income autocallable securities due May 6, 2024 linked to the Market Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8% if the fund closes at or above the 60% coupon barrier level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the fund closes at or above its initial level on any quarterly determination date beginning Nov. 1, 2017.
The payout at maturity will be par plus the contingent coupon unless the fund finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses.
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 fund: | Market Vectors Gold Miners ETF
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| Amount: | $1.5 million
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| Maturity: | May 6, 2024
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| Coupon: | 8% annualized for each quarter if fund closes at or above 60% coupon barrier on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | Par if fund finishes at or above 60% downside threshold; otherwise, 1% loss for each 1% decline
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| Call: | At par plus contingent payment if fund closes at or above initial level on any quarterly determination date beginning Nov. 1, 2017
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| Initial level: | $22.22
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| Trigger levels: | $13.332, 60% of initial level
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| Pricing date: | April 25
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| Settlement date: | May 3
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 2.5%
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| Cusip: | 40433U4U7
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