By Wendy Van Sickle
Columbus, Ohio, April 5 – HSBC USA Inc. priced $10.44 million of contingent income autocallable securities due April 1, 2027 linked to the performance of Wynn Resorts, Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.65% if the stock closes at or above its coupon barrier, 60% of its initial level, on the determination date for that period.
The notes will be called at par plus the contingent coupon if the stock closes at or above its initial level on any quarterly redemption date.
The payout at maturity will be par plus the final coupon unless the stock finishes below its 60% downside threshold, in which case investors will have full exposure to loss.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is the distributor.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Wynn Resorts, Ltd.
|
| Amount: | $10,438,000
|
| Maturity: | April 1, 2027
|
| Coupon: | 10.65% per year, payable quarterly if the stock closes at or above coupon barrier on determination date for that period
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus the final coupon; otherwise, full exposure to loss
|
| Call: | Par plus the contingent coupon if the stock closes at or above its initial level on any quarterly redemption date
|
| Initial level: | $102.23
|
| Coupon barrier level: | $61.338; 60% of initial level
|
| Downside threshold: | $61.338; 60% of initial level
|
| Pricing date: | March 28
|
| Settlement date: | April 3
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distributor: | Morgan Stanley Wealth Management
|
| Fees: | 2.25%
|
| Cusip: | 40447AR30
|
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