By Angela McDaniels
Tacoma, Wash., Oct. 21 – HSBC USA Inc. priced $2.5 million of 10% autocallable yield notes due Oct. 31, 2016 linked to the common stocks of Baker Hughes Inc., Halliburton Co. and Schlumberger Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be called at par if each stock closes at or above its initial share price on any quarterly call observation date.
The payout at maturity will be par unless any stock finishes below its trigger price, 65% of its initial share price, in which case investors will receive a number of shares of the least-performing stock equal to $1,000 divided by its initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
For each stock’s initial share price, the issuer selected an intraday price of that stock on the pricing date that is higher than that stock’s closing share price on that day.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying stocks: | Baker Hughes Inc. (NYSE: BHI), Halliburton Co. (NYSE: HAL) and Schlumberger Ltd. (NYSE: SLB)
|
| Amount: | $2.5 million
|
| Maturity: | Oct. 31, 2016
|
| Coupon: | 10%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par unless any stock finishes below trigger price, in which case number of shares of least-performing stock equal to $1,000 divided by initial share price or, at issuer’s option, amount in cash equal to value of those shares
|
| Call: | Automatically at par if each stock closes at or above initial share price on any quarterly call observation date
|
| Initial share prices: | $54.48 for Baker Hughes, $54.02 for Halliburton and $96.53 for Schlumberger (higher than companies’ closing share prices on pricing date of $53.13, $52.60 and $93.97, respectively)
|
| Trigger prices: | 65% of initial share prices
|
| Pricing date: | Oct. 17
|
| Settlement date: | Oct. 31
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1%
|
| Cusip: | 40433BRH3
|
© 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.
