By Wendy Van Sickle
Columbus, Ohio, Aug. 21 – HSBC USA Inc. priced $3.93 million of contingent income autocallable securities due Aug. 22, 2019 linked to General Electric Co. 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 6.4% if General Electric shares close at or above the 85% downside threshold on a determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if General Electric shares close at or above its initial level on any of the first seven determination dates.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below its 85% 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
|
| Underlying stock: | General Electric Co.
|
| Amount: | $3,933,500
|
| Maturity: | Aug. 22, 2019
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| Coupon: | 6.4% per year, payable quarterly if stock closes at or above downside threshold on determination date for that quarter
|
| Price: | Par
|
| 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 initial level on first seven determination dates
|
| Initial share price: | $24.55
|
| Downside threshold: | $20.8675, 85% of initial share price
|
| Pricing date: | Aug. 18
|
| Settlement date: | Aug. 23
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 2%
|
| Cusip: | 40435G642
|
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