By Susanna Moon
Chicago, May 21 - HSBC USA Inc. priced $5.13 million of contingent income autocallable securities due May 21, 2015 linked to Market Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.75% for each quarter that the fund closes at or above the barrier level, 80% of the initial share price, on the determination date for that quarter.
The notes will be redeemed at par plus the contingent payment if the fund closes at or above the initial level on any quarterly determination date other than the final one.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the fund finishes below the barrier level, in which case the payout will be par plus the return with exposure to any losses.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying fund: | Market Vectors Gold Miners ETF
|
| Amount: | $5,132,800
|
| Maturity: | May 21, 2015
|
| Contingent coupon: | 11.75% annualized for each quarter that fund closes at or above barrier level on determination date for that quarter
|
| Price: | Par of $10.00
|
| Payout at maturity: | If fund finishes at or above barrier level, par plus contingent payment; otherwise, par plus return with exposure to any losses
|
| Call: | At par plus contingent payment if fund closes at or above initial level on any quarterly determination date other than final one
|
| Initial level: | $23.42
|
| Barrier level: | $18.74, 80% of initial level
|
| Pricing date: | May 16
|
| Settlement date: | May 21
|
| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management
|
| Fees: | 1.5%
|
| Cusip: | 40434C550
|
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