By Jennifer Chiou
New York, Dec. 30 – HSBC USA Inc. priced $10,616,450 of contingent income autocallable securities due Dec. 31, 2015 linked to Delta Air Lines, Inc. 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 15.35% if the stock closes at or above its 75% 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 price on any of the first three determination dates.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below the 75% barrier level, in which case investors will receive a number of Delta Air Lines shares equal to par of $10 divided by the initial share price.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is the distributor.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
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| Underlying stock: | Delta Air Lines, Inc. (Symbol: DAL)
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| Amount: | $10,616,450
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| Maturity: | Dec. 31, 2015
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| Coupon: | 15.35% annualized for each quarter that shares close at or above barrier level on quarterly determination date
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| Price: | Par of $10
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| Payout at maturity: | Par plus any contingent coupon unless stock finishes below barrier level, in which case Delta Air Lines shares equal to par of $10 divided by the initial share price
|
| Call: | At par plus contingent coupon if stock closes at or above initial price on any of first three determination dates
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| Initial price: | $48.39
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| Barrier price: | $36.29, 75% of initial price
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| Pricing date: | Dec. 26
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| Settlement date: | Dec. 31
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| Agent: | HSBC Securities (USA) Inc.
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| Distributor: | Morgan Stanley Wealth Management
|
| Fees: | 1.75%
|
| Cusip: | 40434F694
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