By Marisa Wong
Madison, Wis., Sept. 4 - HSBC USA Inc. priced $9.98 million of contingent income autocallable securities due Sept. 6, 2016 linked to the common stock of Apple Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.2% if the stock closes at or above the 80% downside threshold level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial share price on any of the first 11 determination dates.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below the 80% downside threshold level, in which case investors will receive a number of Apple shares equal to par of $10.00 divided by the initial share price.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Smith Barney LLC will handle distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Apple Inc. (Nasdaq: AAPL)
|
| Amount: | $9,975,470
|
| Maturity: | Sept. 6, 2016
|
| Coupon: | 11.2% annualized for each quarter that shares close at or above downside threshold on quarterly determination date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus any contingent coupon unless stock finishes below downside threshold level, in which case number of Apple shares equal to $10 divided by initial share price
|
| Call: | At par plus the contingent coupon if stock closes at or above the initial share price on any of the first 11 determination dates
|
| Initial price: | $487.05
|
| Downside threshold: | $389.64, 80% of initial level
|
| Pricing date: | Aug. 30
|
| Settlement date: | Sept. 5
|
| Agent: | HSBC Securities (USA) Inc.; distribution through Morgan Stanley Smith Barney LLC
|
| Fees: | 2.25%
|
| Cusip: | 40433X282
|
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