By Devika Patel
Knoxville, Tenn., June 20 – HSBC USA Inc. priced $1.73 million of contingent income autocallable securities due June 19, 2020 linked to the American Depositary Shares of Ctrip.com International, Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
If Ctrip.com ADS close at or above the coupon barrier level, 80% of the initial ADS price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annual rate of 8.75%.
The notes will be called at par of $10 plus the contingent coupon if Ctrip.com ADS close at or above the initial ADS price on any of the first 11 determination dates beginning on Sept. 18, 2017.
If the final ADS price is greater than or equal to the downside threshold level, 80% of the initial ADS price, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final ADS price is less than the initial ADS 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: | Ctrip.com International, Ltd. (Symbol: CTRP)
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Amount: | $1,729,000
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Maturity: | June 19, 2020
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Coupon: | 8.75% per year, payable quarterly if Ctrip.com ADS close at or above downside threshold level on determination date for that quarter
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Price: | Par of $10.00
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Payout at maturity: | If final ADS price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final ADS price is less than initial ADS price
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Call: | At par plus contingent coupon if Ctrip.com ADS close at or above initial unit price on any of the first 11 determination dates beginning on Sept. 18, 2017
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Initial share price: | $52.94
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Coupon barrier level: | $42.352, 80% of initial ADS price
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Downside threshold: | $42.352, 80% of initial ADS price
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Pricing date: | June 16
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Settlement date: | June 21
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Agent: | HSBC Securities (USA) Inc.
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Fees: | 2.5%
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Cusip: | 40435D250
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