By Marisa Wong
Madison, Wis., July 14 – HSBC USA Inc. priced $1 million of worst of autocallable contingent income notes due July 15, 2016 linked to the common stocks of Apache Corp., Chevron Corp. and EOG Resources, 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% if each stock closes at or above its 75% coupon trigger level on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if each stock closes at or above its initial price on any quarterly observation date.
The payout at maturity will be par unless any stock finishes below its 75% trigger level, in which case investors will be fully exposed to any decline of the worst performing stock.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Worst of autocallable contingent income notes
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| Underlying stocks: | Apache Corp. (NYSE: APA), Chevron Corp. (NYSE: CVX) and EOG Resources, Inc. (NYSE: EOG)
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| Amount: | $1 million
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| Maturity: | July 15, 2016
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| Coupon: | 14% per year, payable quarterly if each stock closes at or above trigger level on observation date for that quarter
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| Price: | Par of $1,000
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| Payout at maturity: | Par unless any stock finishes below trigger level, in which case exposure to decline of worst performing stock
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| Call: | At par plus contingent payment if each stock closes at or above initial price on any quarterly determination date
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| Initial prices: | $52.94 for Apache, $94.41 for Chevron, $84.54 for EOG
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| Trigger levels: | 75% of initial price
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| Pricing date: | July 10
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| Settlement date: | July 15
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40433B4E5
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