By Wendy Van Sickle
Columbus, Ohio, Nov. 1 – HSBC USA Inc. priced $6.9 million of contingent income autocallable securities due Nov. 1, 2018 linked to the Market Vectors Gold Miners ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 6.3% if the shares close at or above the 75% downside threshold on a determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if the shares close at or above its initial level on any of the first three determination dates.
The payout at maturity will be par plus the final contingent coupon unless the ETF finishes below its 75% 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 ETF: | Market Vectors Gold Miners
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| Amount: | $6.9 million
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| Maturity: | Nov. 1, 2018
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| Coupon: | 6.3% per year, payable quarterly if ETF closes at or above downside threshold on determination date for that quarter
|
| Price: | Par
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| Payout at maturity: | If ETF finishes at or above downside threshold, par; otherwise, full exposure to decline
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| Call: | At par if ETF closes at or above initial level on first three determination dates
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| Initial share price: | $22.57
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| Downside threshold: | $16.9275, 75% of initial share price
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| Pricing date: | Oct. 27
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| Settlement date: | Nov. 1
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 2%
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| Cusip: | 40435H335
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