By Marisa Wong
Madison, Wis., April 19 - HSBC USA Inc. priced $4 million of 9.5% autocallable notes due Oct. 22, 2014 linked to the least performing of three common stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying stocks are the class B common stock of Berkshire Hathaway, Inc., the common stock of General Electric Co. and the common stock of Halliburton Co.
Interest is payable quarterly.
If each of the underlying stocks closes at or above the initial price on any quarterly observation date, the notes will be automatically called at par plus accrued interest.
If the notes are not called and the final price of each underlying stock is at or above the trigger price, 65% of the initial price, the payout at maturity will be par. Otherwise, the payout will be par plus the return of the least performing stock, with full exposure to losses.
HSBC Securities (USA) Inc. is the agent with J.P. Morgan Securities LLC as the placement agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable notes
|
| Underlying stocks: | Berkshire Hathaway, Inc. (NYSE: BRK.B), the common stock of General Electric Co. (NYSE: GE) and the common stock of Halliburton Co. (NYSE: HAL)
|
| Amount: | $4 million
|
| Maturity: | Oct. 22, 2014
|
| Coupon: | 9.5%; payable quarterly
|
| Price: | Par
|
| Payout at maturity: | If final price of each underlying stock is at or above trigger price, par; otherwise, par plus return of least performing stock, with full exposure to losses
|
| Call: | Automatically at par plus accrued interest if each underlying stock closes at or above initial price on any quarterly observation date
|
| Initial share prices: | $104.57 for Berkshire Hathaway, $22.72 for General Electric, and $37.71 for Halliburton
|
| Trigger prices: | 65% of initial prices
|
| Pricing date: | April 17
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| Settlement date: | April 22
|
| Agent: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as placement agent
|
| Fees: | 1%
|
| Cusip: | 40432XED9
|
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