By Jennifer Chiou
New York, Dec. 30 – HSBC USA Inc. priced $1.2 million of autocallable plus notes due Dec. 31, 2015 linked to the common stocks of Halliburton Co. and Nabors Industries Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a coupon at the rate of 21% per year if each stock closes at or above its coupon trigger, 50% of its initial level, on the observation date for that quarter.
If each stock closes at or above its initial level on any quarterly observation date beginning on June 25, 2015, the notes will be automatically called at par plus the contingent coupon.
If the notes are not called and the final return of the least-performing stock is greater than or equal to negative 50%, the payout at maturity will be par plus the final coupon.
If the final return of the least-performing stock is less than negative 50%, investors will be fully exposed to the decline of the least-performing stock.
The estimated initial value of the notes on the pricing date is $967 per note, which is less than the price to public.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable plus notes
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| Underlying stocks: | Halliburton Co. (Symbol: HAL) and Nabors Industries Ltd. (Symbol: NBR)
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| Amount: | $1.2 million
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| Maturity: | Dec. 31, 2015
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| Coupon: | 21% per year, payable quarterly if each stock closes at or above coupon trigger, 50% of initial level, on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If final return of least-performing stock is greater than or equal to negative 50%, par plus final coupon; if final return of least-performing stock is less than negative 50%, full exposure to decline of least-performing stock
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| Call: | Automatically at par plus contingent coupon if each stock closes at or above its initial level on any coupon observation date beginning on June 25, 2015
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| Initial levels: | $39.73 for Halliburton; $12.82 for Nabors
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| Trigger levels: | $19.865 for Halliburton; $6.41 for Nabors, 50% of initial level
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| Pricing date: | Dec. 26
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| Settlement date: | Dec. 31
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | None
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| Cusip: | 40433BWE4
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