By Wendy Van Sickle
Columbus, Ohio, Jan. 17 – HSBC USA Inc. priced $3.06 million of contingent income autocallable securities due Jan. 17, 2019 linked to the worse performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 9.3% if each index closes at or above the 80% coupon barrier level every trading day that quarter.
The notes will be called at par plus the contingent coupon if each index closes at or above its initial level on any of the first seven quarterly determination dates.
The payout at maturity will be par plus the final coupon unless either index finishes below the 80% downside threshold level, in which case investors will lose 1% for each 1% decline of the worse performing index.
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 indexes: | Russell 2000 and S&P 500
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| Amount: | $3.06 million
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| Maturity: | Jan. 17, 2019
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| Coupon: | 9.3% annualized for each quarter that each index closes at or above coupon barriers on every trading day that quarter
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| Price: | Par
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| Payout at maturity: | Par if each index finishes at or above downside threshold level; otherwise, 1% loss for each 1% decline of worse performing index
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| Call: | At par plus contingent payment if each index closes at or above initial level on any annual of first seven quarterly determination dates
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| Initial levels: | 1,361.066 for Russell and 2,270.44 for S&P
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| Coupon barriers/thresholds: | 1,088.8528 for Russell and 1,816.352 for S&P; 80% of initial levels
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| Pricing date: | Jan. 12
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| Settlement date: | Jan. 18
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| Agent: | HSBC Securities (USA) Inc.
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| Distributor: | Morgan Stanley Wealth Management
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| Fees: | 2%
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| Cusip: | 40433UL53
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