By Toni Weeks
San Luis Obispo, Calif., Aug. 5 – HSBC USA Inc. priced $1.08 million of 0% dual directional contingent buffered enhanced notes due Aug. 20, 2015 linked to the common stock of Pfizer Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If the share return is greater than 5%, the payout at maturity will be par plus the return, capped at 12%.
If the share return is greater than or equal to negative 5% but less than or equal to 5%, the payout at maturity will be par plus the contingent minimum return of 5%.
If the final share price is less than negative 5% but equal to or greater than negative 10%, the payout will be par plus the absolute value of the stock return.
If the final share price is less than the initial share price by more than 10%, investors will lose 1% for every 1% that the final share price is less than the initial share price.
The final share price will be the average of the closing prices on the five trading days ending Aug. 17, 2015.
HSBC Securities (USA) Inc. is the underwriter. J.P. Morgan Securities LLC is the placement agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Dual directional contingent buffered enhanced notes
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| Underlying stock: | Pfizer Inc. (Symbol: PFE)
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| Amount: | $1.08 million
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| Maturity: | Aug. 20, 2015
|
| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If the stock return is greater than 5%, par plus the return, capped at 12%; if return is greater than or equal to negative 5% but less than or equal to 5%, par plus 5%; if final price is less than negative 5% but equal to or greater than negative 10%, par plus absolute value of the stock return; if final price is less than initial price by more than 10%, full exposure to losses from initial price
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| Initial price: | $28.86
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| Pricing date: | Aug. 1
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| Settlement date: | Aug. 6
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| Underwriter: | HSBC Securities (USA) Inc.
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| Agent: | J.P. Morgan Securities LLC
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| Fees: | 1%
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| Cusip: | 40433BKV9
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