By Susanna Moon
Chicago, Sept. 22 – HSBC USA Inc. priced $9.1 million of contingent income autocallable securities due Sept. 18, 2020 linked to Amazon.com, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 8% if Amazon shares close at or above the 80% downside threshold on a determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if Amazon shares close at or above its initial level on any of the first 11 determination dates.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below its 80% downside threshold, in which case investors will lose 1% for each 1% decline.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Amazon.com, Inc. (Symbol: AMZN)
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| Amount: | $9,100,470
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| Maturity: | Sept. 18, 2020
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| Coupon: | 8% per year, payable quarterly if stock closes at or above downside threshold on determination date for that quarter
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| 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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| Call: | At par if stock closes at or above initial level on first 11 determination dates
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| Initial share price: | $986.79
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| Downside threshold: | $789.432, 80% of initial share price
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| Pricing date: | Sept. 15
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| Settlement date: | Sept. 20
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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: | 40435G329
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