By Wendy Van Sickle
Columbus, Ohio, Aug. 22 – HSBC USA Inc. priced $3.21 million of contingent income autocallable securities due Aug. 21, 2020 linked to salesforce.com, inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 8.96% if salesforce.com shares close at or above the 80% downside threshold on a determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if salesforce.com shares close at or above its call level on any of the first 11 determination dates. The redemption threshold is 105% of the initial level on the first four determination dates, 110% on the fifth through eighth determination dates and 115% on the ninth through 11th determination dates.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below its 80% downside threshold, in which case investors will lose 1% for each 1% decline.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
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| Underlying stock: | salesforce.com. inc.
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| Amount: | $3,210,870
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| Maturity: | Aug. 21, 2020
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| Coupon: | 8.96% per year, payable quarterly if stock closes at or above downside threshold on determination date for that quarter
|
| Price: | Par
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| Payout at maturity: | If stock finishes at or above downside threshold, par; otherwise, full exposure to decline
|
| Call: | At par if stock closes at or above call level on first 11 determination dates
|
| Call level: | 105% of initial level on first four determination dates, 110% on fifth through eighth dates and 115% on ninth through 11th dates
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| Initial share price: | $90.76
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| Downside threshold: | $72.608, 80% of initial share price
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| Pricing date: | Aug. 18
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| Settlement date: | Aug. 23
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 2.5%
|
| Cusip: | 40435G634
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