By Susanna Moon
Chicago, Aug. 26 – HSBC USA Inc. priced $4.67 million of contingent income autocallable securities due Aug. 25, 2022 linked to the worst performing of the Nikkei 225 index, the Russell 2000 index and the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.3% if each index closed at or above the 75% coupon barrier level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above the initial price on any of the first 27 quarterly determination dates.
The payout at maturity will be par plus the final coupon unless any index finishes below the 55% trigger level, in which case investors will be fully exposed to any losses of the worst performing index.
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 auto-callable securities
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| Underlying: | Nikkei 225 index, the Russell 2000 index and the Euro Stoxx 50 index
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| Amount: | $4,667,490
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| Maturity: | Aug. 25, 2022
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| Coupon: | 9.3% annualized for each quarter that each index closes at or above barrier level on determination date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par plus contingent coupon if each index finishes at or above trigger level; otherwise, full exposure to any losses of worst performing index
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| Call: | At par plus contingent payment if each index closes at or above initial share price on any of first 27 determination dates
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| Initial level: | 19,435.83 for Nikkei, 1,156.788 for Russell and 3,247.26 for Stoxx
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| Coupon barriers: | 75% of initial levels
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| Trigger levels: | 55% of initial levels
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| Pricing date: | Aug. 21
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| Settlement date: | Aug. 26
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| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management handling distribution
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| Fees: | 3%
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| Cusip: | 40434E523
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