By Susanna Moon
Chicago, Sept. 3 – HSBC USA Inc. priced $724,800 of contingent income autocallable securities due Aug. 31, 2018 linked to Phillips 66 shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.25% if the stock closes at or above its 80% coupon barrier level on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above its initial level on any of the first 11 determination dates.
The payout at maturity will be par unless the stock finishes below its 80% barrier level, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Phillips 66 (Symbol: PSX)
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| Amount: | $724,800
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| Maturity: | Aug. 31, 2018
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| Coupon: | 10.25% per year, payable quarterly if stock closes at or above barrier level on observation date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par unless stock finishes below barrier level, in which case full exposure to any losses
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| Call: | At par plus contingent payment if stock closes at or above initial level on any of the first 11 determination dates
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| Initial level: | $77.23
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| Barrier level: | 80% of initial level
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| Pricing date: | Aug. 28
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| Settlement date: | Sept. 3
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 2%
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| Cusip: | 40434K503
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