By Susanna Moon
Chicago, May 21 - HSBC USA Inc. priced $760,000 of trigger phoenix autocallable optimization securities due Nov. 21, 2014 linked to Mosaic Co. 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 10.9% if Mosaic stock closes at or above the 80% barrier level on the observation date for that month.
If the shares close at or above the initial price on any monthly observation date after one year, the notes will be called at par of $10 plus the contingent coupon.
The payout at maturity will be par plus the contingent coupon unless Mosaic shares finish below the % 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.
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Mosaic Co. (Symbol: MOS)
|
| Amount: | $760,000
|
| Maturity: | Nov. 21, 2014
|
| Coupon: | 10.9% annualized for each quarter that stock closes at or above barrier price
|
| Price: | Par of $10
|
| Payout at maturity: | If Mosaic shares finish at or above trigger price, par plus contingent coupon; otherwise, full exposure to any losses
|
| Call: | Par plus contingent coupon if shares close at or above initial price on any monthly observation date after one year
|
| Initial price: | $60.75
|
| Barrier/trigger price: | $48.60, 80% of initial price
|
| Pricing date: | May 17
|
| Settlement date: | May 22
|
| Underwriter: | HSBC Securities (USA) Inc. with UBS Financial Services Inc. as dealer
|
| Fees: | 1.5%
|
| Cusip: | 40433X696
|
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