By Wendy Van Sickle
Columbus, Ohio, July 25 – HSBC USA Inc. priced $11.78 million of contingent income autocallable securities due July 26, 2018 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 10.3% if the fund closes at or above the 75% downside threshold 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 of the first three quarterly determination dates.
The payout at maturity will be par plus the contingent coupon unless the fund finishes below its 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.
|
| Issue: | Contingent income autocallable securities
|
| Underlying fund: | Market Vectors Gold Miners ETF
|
| Amount: | $11,781,740
|
| Maturity: | July 26, 2018
|
| Coupon: | 10.3% annualized for each quarter if fund closes at or above 75% downside threshold on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par if fund finishes at or above downside threshold; otherwise, 1% loss for each 1% decline
|
| Call: | At par plus contingent payment if fund closes at or above initial level on any of first three quarterly determination dates
|
| Initial level: | $22.41
|
| Downside thresholds: | $16.8075, 75% of initial level
|
| Pricing date: | July 21
|
| Settlement date: | July 26
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.75%
|
| Cusip: | 40435G808
|
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