By Jennifer Chiou
New York, Nov. 9 - HSBC USA Inc. priced $1 million of phoenix semiannual review notes due Nov. 27, 2013 linked to the common stock of Weatherford International Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay an annualized coupon of 14% if the stock closes above the coupon barrier, 65% of the initial price, on the semiannual observation dates.
If Weatherford International stock closes at or above the initial share price on either of the May 22, 2013 and Nov. 22, 2013 observation dates, the notes will be automatically called at par plus any coupon.
If the notes are not called and the final share price is greater than 65% of the initial price, investors will receive par plus the contingent coupon. Otherwise, investors will share in any losses.
HSBC Securities (USA) Inc. is the agent with J.P. Morgan Securities LLC acting as placement agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Phoenix semiannual review notes
|
| Underlying stock: | Weatherford International Ltd. (NYSE: WFT)
|
| Amount: | $1 million
|
| Maturity: | Nov. 27, 2013
|
| Coupon: | 14%, payable semiannually if stock closes at or above trigger price on observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if Weatherford International shares finish at or above trigger price; otherwise, par plus stock return
|
| Call: | Automatically at par plus contingent coupon if Weatherford International shares close at or above initial price on either observation date
|
| Initial share price: | $11.01
|
| Trigger price: | $7.1565, 65% of initial price
|
| Pricing date: | Nov. 7
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| Settlement date: | Nov. 13
|
| Agent: | HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as placement agent
|
| Fees: | 1%
|
| Cusip: | 40432X3J8
|
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