By Susanna Moon
Chicago, Feb. 14 – HSBC USA Inc. priced $12.45 million of contingent income autocallable securities due Feb. 5, 2019 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 its 80% coupon barrier on each day during that quarter.
The notes will be called at par if the fund closes at or above its initial level on any of the first three determination dates.
The payout at maturity will be par unless the fund finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.
| 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: | $12,454,240
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| Maturity: | Feb. 5, 2019
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| Coupon: | 8% annualized, payable quarterly if fund closes at or above 80% coupon barrier on each day during that quarter
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| Price: | Par
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| Payout at maturity: | If fund finishes at or above downside threshold, par; otherwise, 1% loss for each 1% decline
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| Call: | At par if fund closes at or above its initial level on any of first three determination dates
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| Initial level: | $23.75
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| Trigger level: | $19.00, 80% of initial level
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| Pricing date: | Jan. 31
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| Settlement date: | Feb. 5
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 1.25%
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| Cusip: | 40435J372
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