By William Gullotti
Buffalo, N.Y., Nov. 10 – HSBC USA Inc. priced $12.46 million of contingent income autocallable securities due Nov. 8, 2024 linked to the performance of Tesla, 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 14.25% if the stock closes at or above its coupon barrier, 50% 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 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 50% downside threshold, in which case investors will be fully exposed to the stock’s decline from its initial level.
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: | Tesla, Inc.
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| Amount: | $12,455,550
|
| Maturity: | Nov. 8, 2024
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| Coupon: | 14.25% per year, payable quarterly if the stock closes at or above coupon barrier on determination date for that period
|
| Price: | Par of $10
|
| 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 decline from initial level
|
| Call: | Par plus the contingent coupon if the stock closes above its initial level on any quarterly redemption date
|
| Initial level: | $1,222.09
|
| Coupon barrier level: | $611.045; 50% of initial level
|
| Downside threshold: | $611.045; 50% of initial levels
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| Pricing date: | Nov. 5
|
| Settlement date: | Nov. 10
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distributor: | Morgan Stanley Wealth Management
|
| Fees: | 2.5%
|
| Cusip: | 40390L701
|
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