By Taylor Fox
New York, Aug. 12 – HSBC USA Inc. priced $6 million of 6.2% buffered income autocallable securities with downside leverage due Aug. 11, 2021 linked to the SPDR S&P 500 ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
If on any quarterly determination date, the closing price of the shares is above its initial level, the notes will be redeemed at par plus the interest payment.
If the final price of the fund is above 80% of its initial level, he payout at maturity will be par plus the interest payment.
Otherwise, investors will receive 37.6381 shares of the underlying and any cash value of fractional shares plus the interest payment due on the maturity date.
HSBC Securities (USA) Inc. is the agent and Morgan Stanley Wealth Management is distributor.
| Issuer: | HSBC USA Inc.
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| Issue: | Buffered income autocallable securities with downside leverage
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| Underlying ETF: | SPDR S&P 500 ETF
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| Amount: | $6 million
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| Maturity: | Aug. 11, 2021
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| Price: | Par of $10,000
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| Coupon: | 6.2%, payable quarterly
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| Call: | Autocallable on quarterly redemption date if share price is above initial price at par plus interest payment
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| Payout at maturity: | If shares finish above 80% of initial level, payout of par plus interest; otherwise 37.6381 shares of fund and any cash value of fractional shares plus interest
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| Initial level: | $332.11
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| Downside threshold level: | $265.68, 80% of initial level
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| Pricing date: | Aug. 5
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| Settlement date: | Aug. 11
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| Agent: | HSBC Securities (USA) Inc.
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| Distributor: | Morgan Stanley Wealth Management
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| Fees: | 0.35%
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| Cusip: | 40438J247
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