New Issue: HSBC prices $5.12 million autocallable securities on Merck

By Wendy Van Sickle

Columbus, Ohio, Jan. 23 – HSBC USA Inc. priced $3.9 million of 0% autocallable securities due Jan. 22, 2021 linked to Merck & Co., Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized premium of 8.5% if the stock closes at or above its initial share price on any quarterly observation date.

The payout at maturity will be par plus 25.5% if the stock finishes above its initial level. Otherwise, the payout will be par unless the stock finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is handling distribution.

Issuer:	HSBC USA Inc.
Issue:	Autocallable securities
Underlying stock:	Merck & Co., Inc.
Amount:	$5,119,000
Maturity:	Jan. 22, 2021
Coupon:	0%
Price:	Par
Payout at maturity:	If stock finishes at or above initial level, par plus 25.5%; otherwise, par unless stock finishes below downside threshold, in which case full exposure to decline
Call:	At par plus 8.5% annualized call premium if stock closes at or above initial level on any quarterly call date
Initial share price:	$61.28
Downside threshold:	$49.024, 80% of initial share price
Pricing date:	Jan. 19
Settlement date:	Jan. 24
Agent:	HSBC Securities (USA) Inc.
Distribution:	Morgan Stanley Wealth Management
Fees:	2.5%
Cusip:	40435J489

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