By Susanna Moon
Chicago, March 14 – HSBC USA Inc. priced $7.45 million of contingent income autocallable securities due Feb. 26, 2021 linked to LyondellBasell Industries NV 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 10.25% if the stock closes at or above the 75% downside threshold on the observation date for that quarter.
The notes will be called at par if the stock closes at or above its initial level on any of the first 11 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 with Morgan Stanley Wealth Management as a distributor.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | LyondellBasell Industries NV (Symbol: LYB)
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| Amount: | $7,450,750
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| Maturity: | Feb. 26, 2021
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| Coupon: | 10.25%, payable quarterly if stock closes at or above 75% downside threshold on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | Par unless stock finishes below downside threshold, in which case 1% loss per 1% decline
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| Call: | At par if index closes at or above initial level on any of the first 11 determination dates
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| Initial level: | $111.60
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| Downside threshold: | $83.70, 75% of initial level
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| Pricing date: | Feb. 23
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| Settlement date: | Feb. 28
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| Agent: | HSBC Securities (USA) Inc.
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| Distributor: | Morgan Stanley Wealth Management
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| Fees: | 2%
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| Cusip: | 40435M508
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