By Angela McDaniels
Tacoma, Wash., Aug. 25 – HSBC USA Inc. priced $2.26 million of 0% autocallable step-up securities due Aug. 26, 2020 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.
Beginning Aug. 23, 2016, the notes will be automatically called at par of $10 plus a call premium of 9% per year if the index closes at or above the initial index level on any quarterly determination date.
If the notes are not called and the final index level is greater than or equal to the initial index level, the payout at maturity will be par plus 45%.
If the final index level is less than the initial index level but greater than or equal to the downside threshold value, 78% of the initial index level, the payout will be par.
If the final index level is less than the downside threshold level, investors will be fully exposed to the index’s decline from its initial level.
HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable step-up securities
|
| Underlying index: | Euro Stoxx 50
|
| Amount: | $2,262,500
|
| Maturity: | Aug. 26, 2020
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If final index level is greater than or equal to initial index level, be par plus 45%; if final index level is less than initial index level but greater than or equal to downside threshold value, par; if final index level is less than downside threshold level, full exposure to index’s decline from initial level
|
| Call: | Beginning Aug. 23, 2016, notes will be automatically called at par plus call premium of 9% per year if index closes at or above initial index level on any quarterly determination date
|
| Initial index level: | 3,247.26
|
| Trigger level: | 2,532.86, 78% of initial level
|
| Pricing date: | Aug. 21
|
| Settlement date: | Aug. 26
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 3%
|
| Cusip: | 40434K305
|
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