Chicago, April 7 – HSBC USA Inc. priced $3 million of contingent income autocallable securities due March 24, 2021 linked to Uber Technologies, Inc. common 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 30% if the stock closes at or above the downside threshold level, 50% of the initial share price, on a determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial level on any quarterly determination date.
The payout at maturity will be par unless the stock finishes below its 50% downside threshold, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Uber Technologies, Inc.
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| Amount: | $3,000,000
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| Maturity: | March 24, 2021
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| Coupon: | 30% per year, payable quarterly if shares close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10
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| Payout at maturity: | If stock finishes at or above downside threshold, par; otherwise, full exposure to any losses
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| Call: | At par plus contingent coupon if shares close at or above initial share price on any quarterly determination date
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| Initial share price: | $20.49
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| Downside threshold: | $10.245, 50% of initial share price
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| Pricing date: | March 19
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| Settlement date: | March 24
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| Agent: | HSBC Securities (USA) Inc.
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 1.75%
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| Cusip: | 40438J825
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