By William Gullotti
Buffalo, N.Y., Aug. 30 – HSBC USA Inc. priced $10 million of buffered income autocallable securities with memory and downside leverage due Aug. 29, 2023 linked to the SPDR S&P 500 ETF, according to a 424B2 filing with the Securities and Exchange Commission.
The securities will pay a contingent quarterly coupon at an annual rate of 11.4% if the ETF closes at or above its 85% downside threshold on the corresponding observation date. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
If, on any quarterly determination date, the closing price of the shares is greater than or equal to its initial level, the notes will be redeemed at par plus the coupon.
If the ETF finishes at or above 85% of its initial level, the payout at maturity will be par plus all unpaid coupons.
Otherwise, investors will receive 2.8531 shares of the underlying with any fractional shares paid as cash.
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 memory and downside leverage
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| Underlying ETF: | SPDR S&P 500 ETF
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| Amount: | $10 million
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| Maturity: | Aug. 29, 2023
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| Price: | Par
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| Coupon: | 11.4%, payable quarterly if the ETF closes at or above downside threshold on the relevant observation date; coupon payment events will automatically include any previously unpaid coupons
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| Payout at maturity: | If shares finish at or above 85% of initial level, par plus all unpaid coupons; otherwise, 2.8531 shares of fund with the value of fractional shares paid as cash
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| Call: | Autocallable at par plus the coupon if shares close at or above initial level on any quarterly valuation date
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| Initial level: | $412.35
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| Downside threshold level: | $350.4975; 85% of initial level
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| Strike date: | Aug. 23
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| Pricing date: | Aug. 25
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| Settlement date: | Aug. 29
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| Agent: | HSBC Securities (USA) Inc.
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| Distributor: | Morgan Stanley Wealth Management
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| Fees: | 0.2%
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| Cusip: | 40428HTT9
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