By Wendy Van Sickle
Columbus, Ohio, Oct. 18 – HSBC USA Inc. priced $3.09 million of autocallable contingent income securities due Oct. 10, 2019 linked to the common stock of United Continental Holdings, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.65% if the stock closes at or above its 75% coupon barrier on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above its initial share price on any of the first three determination dates.
The payout at maturity will be par unless the stock finishes below its 75% 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 contingent income securities
|
| Underlying stock: | United Continental Holdings, Inc.
|
| Amount: | $3,092,000
|
| Maturity: | Oct. 10, 2019
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| Coupon: | 8.65%, payable quarterly if stock closes at or above 75% coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless stock finishes below 75% downside threshold, in which case 1% loss per 1% decline
|
| Call: | At par if stock closes at or above initial level on any of the first three determination dates
|
| Initial level: | $84.14
|
| Downside threshold: | $63.11, 75% of initial level
|
| Pricing date: | Oct. 5
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| Settlement date: | Oct. 11
|
| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management handling distribution
|
| Fees: | 2.25%
|
| Cusip: | 40435X116
|
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