By Wendy Van Sickle
Columbus, Ohio, April 8 – HSBC USA Inc. priced $10 million of buffered contingent income autocallable securities with memory and downside leverage due April 9, 2025 linked to the performance of Tesla, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 16.11% if the stock closes at or above its coupon barrier, 60% of its initial level, on the determination date for that period. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be called at par plus the contingent coupon if the stock closes at or above its initial level on any monthly redemption date.
The payout at maturity will be par plus the final coupon unless the stock finishes below its 60% downside threshold, in which case investors will lose 1.6667% for every 1% that the stock declines below downside threshold.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is the distributor.
| Issuer: | HSBC USA Inc.
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| Issue: | Buffered contingent income autocallable securities with memory and downside leverage
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| Underlying stock: | Tesla, Inc.
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| Amount: | $10 million
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| Maturity: | April 9, 2025
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| Coupon: | 16.11% per year, payable monthly if the stock closes at or above coupon barrier on determination date for that period; coupon payment events will automatically include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus the final coupon; otherwise, lose 1.6667% for every 1% decline below downside threshold
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| Call: | Par plus the contingent coupon if the stock closes at or above its initial level on any monthly redemption date
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| Initial level: | $166.63
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| Coupon barrier level: | $99.978; 60% of initial level
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| Downside threshold: | $99.978; 60% of initial level
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| Strike date: | April 2
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| Pricing date: | April 3
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| Settlement date: | April 8
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| Agent: | HSBC Securities (USA) Inc.
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| Distributor: | Morgan Stanley Wealth Management
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| Fees: | 0.1%
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| Cusip: | 40447AY57
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