By Wendy Van Sickle
Columbus, Ohio, Jan. 10 – HSBC USA Inc. priced $10.02 million of contingent income autocallable securities due Jan. 10, 2019 linked to the SPDR S&P Oil & Gas Exploration & Production 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 9.5% if the ETF closes at or above the 80% coupon barrier on the observation date for that quarter.
The notes will be called at par if the ETF closes at or above its initial level on any of the first three determination dates.
The payout at maturity will be par unless the ETF finishes below its 80% trigger level, 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.
|
| Issue: | Contingent income autocallable securities
|
| Underlying ETF: | SPDR S&P Oil & Gas Exploration & Production ETF
|
| Amount: | $10,017,380
|
| Maturity: | Jan. 10, 2019
|
| Coupon: | 9.5%, payable quarterly if ETF closes at or above 80% coupon barrier on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless ETF falls below 80% trigger, in which case 1% loss per 1% decline
|
| Call: | At par if ETF closes at or above initial level on any of the first three determination dates
|
| Initial level: | $38.54
|
| Trigger level: | $30.83, 80% of initial level
|
| Pricing date: | Jan. 5
|
| Settlement date: | Jan. 10
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distributor: | Morgan Stanley Wealth Management
|
| Fees: | 1.75%
|
| Cusip: | 40435J554
|
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