By Wendy Van Sickle
Columbus, Ohio, Feb. 19 – HSBC USA Inc. priced $2.77 million of contingent income autocallable securities due Feb. 8, 2024 linked to the common stock of Blackstone Group, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 8.6% if the stock closes at or above the downside threshold level, 80% of the initial share price, on a determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial level on any determination date other than the final date.
The payout at maturity will be par unless the stock finishes below its 80% downside threshold, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Blackstone Group, Inc.
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| Amount: | $2,774,000
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| Maturity: | Feb. 8, 2024
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| Coupon: | 8.6% per year, payable quarterly if shares close at or above downside threshold level on determination date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | If stock finishes at or above downside threshold, par; otherwise, full exposure to any losses
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| Call: | At par plus contingent coupon if shares close at or above initial share price on any determination date other than the final date
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| Initial share price: | $70.84
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| Downside threshold: | $55.672, 80% of initial share price
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| Pricing date: | Feb. 5
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| Settlement date: | Feb. 10
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| Agent: | HSBC Securities (USA) Inc.
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 2.5%
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| Cusip: | 40438U887
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