By Devika Patel
Knoxville, Tenn., June 20 – HSBC USA Inc. priced $8.38 million of contingent income autocallable securities due June 19, 2020 linked to the common units of Blackstone Group LP, according to a 424B2 filing with the Securities and Exchange Commission.
If Blackstone units close at or above the coupon barrier level, 80% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 10.05%.
The notes will be called at par of $10 plus the contingent coupon if Blackstone units close at or above the initial unit price on any of the first 11 determination dates beginning on Sept. 18, 2017.
If the final unit price is greater than or equal to the downside threshold level, 80% of the initial unit price, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final unit price is less than the initial unit price.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Blackstone Group LP (Symbol: BX)
|
| Amount: | $8,380,270
|
| Maturity: | June 19, 2020
|
| Coupon: | 10.05% per year, payable quarterly if Blackstone units close at or above downside threshold level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final unit price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, 1% loss for every 1% that final unit price is less than initial unit price
|
| Call: | At par plus contingent coupon if Blackstone units close at or above initial unit price on any of the first 11 determination dates beginning on Sept. 18, 2017
|
| Initial share price: | $32.66
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| Coupon barrier level: | $26.128, 80% of initial share price
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| Downside threshold: | $26.128, 80% of initial share price
|
| Pricing date: | June 16
|
| Settlement date: | June 21
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 2.5%
|
| Cusip: | 40435D235
|
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