By Susanna Moon
Chicago, Oct. 17 – HSBC USA Inc. priced $2 million of trigger phoenix callable optimization securities due Oct. 20, 2015 linked to Hertz Global Holdings, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 14.1% if Hertz stock closes at or above the 60% barrier level on the observation date for that quarter.
The notes are callable at par of $10 plus the contingent coupon on any quarterly observation date after one year.
The payout at maturity will be par plus the contingent coupon unless Hertz shares finish below the 60% trigger level, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the underwriter. UBS Financial Services Inc. is the dealer.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger phoenix callable optimization securities
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| Underlying stock: | Hertz Global Holdings, Inc. (Symbol: HTZ)
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| Amount: | $2 million
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| Maturity: | Oct. 20, 2015
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| Coupon: | 14.1% annualized for each quarter that stock closes at or above barrier price
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| Price: | Par of $10
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| Payout at maturity: | If Hertz shares finish at or above trigger price, par plus contingent coupon; otherwise, full exposure to any losses
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| Call option: | Par plus contingent coupon on any quarterly observation date
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| Initial price: | $19.38
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| Barrier level: | $11.63, 60% of initial price
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| Pricing date: | Oct. 13
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| Settlement date: | Oct. 20
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| Underwriter: | HSBC Securities (USA) Inc. with UBS Financial Services Inc. as dealer
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| Fees: | 3.5%
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| Cusip: | 40434D376
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