By Susanna Moon
Chicago, March 23 – HSBC USA Inc. priced $4.98 million of contingent income autocallable securities due Sept. 21, 2017 linked to Marathon Oil Corp. stock, 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% if Marathon stock closes at or above the 75% downside threshold on a review date for that month.
The notes will be called at par plus the contingent coupon if the shares close at or above the initial price on any of the first five determination dates.
The payout at maturity will be par plus the contingent coupon unless Marathon shares finish below its 75% downside threshold, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the underwriter, with Morgan Stanley Wealth Management as dealer.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Marathon Oil Corp. (Symbol: MRO)
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| Amount: | $4,984,650
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| Maturity: | Sept. 21, 2017
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| Coupon: | 16%, payable monthly if stock closes at or above 75% downside threshold on review date for that month
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| Price: | Par
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| Payout at maturity: | Par unless the shares fall below 70% trigger, in which case par plus stock return
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| Call: | At par plus contingent coupon if the shares close at or above initial price on any of the first five determination dates
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| Initial share price: | $15.46
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| Downside threshold: | $11.595, 75% of initial price
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| Pricing date: | March 17
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| Settlement date: | March 22
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| Underwriters: | HSBC Securities (USA) Inc.
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| Fees: | 0.75%
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| Cusip: | 40435H665
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