By Devika Patel
Knoxville, Tenn., Oct. 18 – HSBC USA Inc. priced $2.82 million of contingent income autocallable securities due Oct. 17, 2019 linked to the worst performing of the Russell 2000 index and the S&P 500 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 9.05% if each index closes at or above the 80% 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 its initial level on any of the first 11 quarterly determination dates.
The payout at maturity will be par plus the final coupon unless either index finishes below the 80% downside threshold level, in which case investors will lose 1% for each 1% decline of the worst performing index.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income auto-callable securities
|
| Underlying indexes: | Russell 2000 and S&P 500
|
| Amount: | $2,816,000
|
| Maturity: | Oct. 17, 2019
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| Coupon: | 9.05% annualized for each quarter that both indexes close at or above barrier levels on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if each index finishes at or above downside threshold level; otherwise, 1% loss for each 1% decline of worst performing index
|
| Call: | At par plus contingent payment if each index closes at or above initial level on any of first 11 determination dates
|
| Initial levels: | 1,212.408 for Russell and 2,132.98 for S&P
|
| Coupon/downside thresholds: | 969.9264 for Russell and 1,706.384 for S&P, 80% of initial levels
|
| Pricing date: | Oct. 14
|
| Settlement date: | Oct. 19
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2%
|
| Cusip: | 40433UWX0
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