By Toni Weeks
San Luis Obispo, Calif., May 1 - HSBC USA Inc. priced $3 million of 7.8% autocallable notes due July 31, 2014 linked to the common stock of Boeing Co. and Halliburton Co., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be called automatically at par if both underlying stocks close at or above their respective initial prices on any quarterly observation date.
A trigger event occurs if the final value of either underlying stock drops by more than 35% of its initial value on the July 28, 2014 final valuation date.
If the notes are not called, the payout at maturity will be par if a trigger event has not occurred. If a trigger event has occurred, the payout at maturity will be par plus the return of the least-performing underlying stock.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable notes
|
| Underlying stocks: | Boeing Co. (NYSE: BA) and Halliburton Co. (NYSE: HAL)
|
| Amount: | $3 million
|
| Maturity: | July 31, 2014
|
| Coupon: | 7.8%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par unless any underlying stock falls below trigger on July 28, 2014, in which case par plus return of least-performing underlying stock
|
| Call: | At par if underlying stocks close at or above initial prices on any quarterly call observation date
|
| Initial prices: | $92.85 for Boeing and $40.57 for Halliburton
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| Trigger level: | 65% of initial prices
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| Pricing date: | April 29
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| Settlement date: | May 1
|
| Underwriter: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as agent
|
| Fees: | 0.9%
|
| Cusip: | 40432XF30
|
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