By Susanna Moon
Chicago, Oct. 30 – HSBC USA Inc. priced $9.81 million of autocallable contingent income securities due April 17, 2019 linked to General Electric Co. stock, according to an FWP filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 15.25% if the stock closes at or above its 80% coupon barrier on the observation date for that month.
The notes will be called at par plus the contingent coupon if the stock closes at or above its initial share price on any of the first five determination dates.
The payout at maturity will be par unless the stock finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income securities
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| Underlying stock: | General Electric Co. (Symbol: GE)
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| Amount: | $9,806,590
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| Maturity: | April 17, 2019
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| Coupon: | 15.25%, payable monthly if stock closes at or above 80% coupon barrier on observation date for that month
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| Price: | Par
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| Payout at maturity: | Par unless stock finishes below 80% downside threshold, in which case 1% loss per 1% decline
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| Call: | At par if stock closes at or above initial level on any of the first five determination dates
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| Initial level: | $12.32
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| Downside threshold: | $9.86, 80% of initial level
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| Pricing date: | Oct. 12
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| Settlement date: | Oct. 17
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.75%
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| Cusip: | 40436A503
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