By Susanna Moon
Chicago, May 21 - HSBC USA Inc. priced $2.88 million of trigger phoenix autocallable optimization securities due Nov. 21, 2014 linked to Expedia, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 14% if International Paper stock closes at or above the 70% barrier level on the observation date for that month.
If the shares close at or above the initial price on any monthly observation date after one year, the notes will be called at par of $10 plus the contingent coupon.
The payout at maturity will be par plus the contingent coupon unless International Paper shares finish below the 70% trigger level, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the underwriter. UBS Financial Services Inc. is the dealer.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Expedia, Inc. (Symbol: EXPE)
|
| Amount: | $2,880,200
|
| Maturity: | Nov. 21, 2014
|
| Coupon: | 14% annualized for each quarter that stock closes at or above barrier price
|
| Price: | Par of $10
|
| Payout at maturity: | If International Paper shares finish at or above trigger price, par plus contingent coupon; otherwise, full exposure to any losses
|
| Call: | Par plus contingent coupon if shares close at or above initial price on any monthly observation date after one year
|
| Initial price: | $58.10
|
| Barrier/trigger price: | $40.67, 70% of initial price
|
| Pricing date: | May 17
|
| Settlement date: | May 22
|
| Underwriter: | HSBC Securities (USA) Inc. with UBS Financial Services Inc. as dealer
|
| Fees: | 1.5%
|
| Cusip: | 40433X688
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
