By Marisa Wong
Madison, Wis., June 30 – HSBC USA Inc. priced $10 million of trigger phoenix autocallable optimization securities due July 11, 2017 linked to iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 4% if the fund closes at or above the trigger level – 64% of the initial share price – on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the shares close at or above the initial price on a quarterly observation date after one year.
If the notes are not called and the fund finishes at or above the trigger level, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Trigger phoenix autocallable optimization securities
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| Underlying fund: | iShares MSCI Emerging Markets ETF
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| Amount: | $10 million
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| Maturity: | July 11, 2017
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| Coupon: | 4%, payable quarterly if fund closes at or above trigger level on observation date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | Par plus contingent coupon if shares finish at or above trigger price; otherwise, par plus stock return
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| Call: | At par plus contingent coupon if shares close at or above initial price on quarterly observation date beginning July 6, 2015
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| Initial share price: | $43.25
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| Trigger level: | $27.68, 64% of initial price
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| Pricing date: | June 26
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| Settlement date: | June 30
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| Underwriter: | HSBC Securities (USA) Inc. with UBS Financial Services Inc. as agent
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| Fees: | 1.5%
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| Cusip: | 40434C311
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