By Toni Weeks
San Luis Obispo, Calif., Sept. 16 – HSBC USA Inc. priced $22.27 million of contingent income autocallable securities due Sept. 17, 2015 linked to 3D Systems Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 15.5% if the stock closes at or above the 65% barrier 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 three quarterly determination dates.
If the notes are not called and the stock finishes at or above the downside threshold level, the payout at maturity will be par plus the final coupon.
If the stock finishes below the barrier level, the payout will be a number of shares equal to $10 divided by the initial price or, at the issuer’s option, the cash value of those shares.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is the dealer.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent interest notes
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| Underlying stock: | 3D Systems Corp. (Symbol: DDD)
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| Amount: | $22,266,740
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| Maturity: | Sept. 17, 2015
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| Coupon: | Each quarter, notes pay contingent coupon at annual rate of 15.5% if 3D Systems shares close at or above interest barrier on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent interest payment, if any; otherwise, a number of shares equal to $10 divided by initial price or, at issuer’s option, cash value of those shares
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| Call: | Automatically at par plus contingent coupon if 3D Systems shares close at or above initial share price on any of first three quarterly determination dates
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| Initial share price: | $52.08
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| Downside threshold: | $33.85, 65% of initial share price
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| Pricing date: | Sept. 12
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| Settlement date: | Sept. 17
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| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management as dealer
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| Fees: | 1.25%
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| Cusip: | 40434D632
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