By Wendy Van Sickle
Columbus, Ohio, July 6– HSBC USA Inc. priced $4.1 million of contingent income trigger securities due April 3, 2018 linked to United States Steel Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annualized rate of 7.85% if the stock closes at or above its 50% downside threshold on the observation date for that month.
If the stock finishes at or above its 50% downside threshold, the payout at maturity will be par plus the final coupon.
Otherwise, investors will be fully exposed to any decline.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management as a dealer.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income trigger securities
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| Underlying stock: | United States Steel Corp.
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| Amount: | $4.1 million
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| Maturity: | April 3, 2018
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| Coupon: | 7.85% per year, payable monthly if stock closes at or above its downside threshold on determination date for that month
|
| Price: | Par
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| Payout at maturity: | If stock finishes at or above downside threshold, par; otherwise, full exposure to decline
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| Initial level: | $22.57
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| Downside threshold: | $11.285, 50% of initial level
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| Pricing date: | June 28
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| Settlement date: | July 3
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| Agent: | HSBC Securities (USA) Inc.
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| Selected dealer: | Morgan Stanley Wealth Management
|
| Fees: | 1.25%
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| Cusip: | 40435H558
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