By Toni Weeks
San Luis Obispo, Calif., Aug. 11 – HSBC USA Inc. priced $2 million of contingent income autocallable securities due Aug. 14, 2015 linked to the common stock of Hertz Global Holdings, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Hertz shares close at or above the downside threshold level, 65% of the initial share price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of 11.45%.
The notes will be called at par of $10 plus the contingent coupon if Hertz shares close at or above the initial share price on any of the first 11 monthly determination dates.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of Hertz shares equal to $10 divided by the initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Hertz Global Holdings, Inc. (Symbol: HTZ)
|
| Amount: | $2 million
|
| Maturity: | Aug. 14, 2015
|
| Coupon: | 11.45% per year, payable monthly if Hertz shares close at or above downside threshold level on determination date for that month
|
| Price: | Par of $10.00
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, a number of Hertz shares equal to $10 divided by initial share price or, at issuer’s option, value of those shares in cash
|
| Call: | Automatically at par plus contingent coupon if Hertz shares close at or above initial share price on any monthly determination date other than final determination date
|
| Initial share price: | $27.20
|
| Downside threshold: | $17.68, 65% of initial share price
|
| Pricing date: | Aug. 6
|
| Settlement date: | Aug. 11
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 0.4%
|
| Cusip: | 40434D848
|
© 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.
