By Jennifer Chiou
New York, Feb. 18 – HSBC USA Inc. priced $3,118,500 of contingent income autocallable securities due Feb. 19, 2016 linked to Macy’s, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
If Macy’s stock closes at or above the downside threshold level of $51.46, which is 80% of initial price, on a quarterly determination date, the notes will pay an annualized contingent payment of 8.1% for that quarter.
If Macy’s stock closes at or above its initial price on any of the quarterly determination dates other than the final date, the notes will be redeemed at par plus the contingent payment.
If the Macy’s stock finishes at or above the downside threshold level, the payout at maturity will be par plus the contingent quarterly payment.
Otherwise, investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is the distributor.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Macy’s, Inc. (Symbol: M)
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| Amount: | $3,118,500
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| Maturity: | Feb. 19, 2016
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| Contingent payment: | 8.1% annualized for quarter if Macy’s stock closes at or above downside threshold level on determination date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par plus contingent coupon if Macy’s stock finishes at or above downside threshold; otherwise full exposure to any losses
|
| Call: | At par plus contingent payment if Macy’s stock closes at or above initial share price on any determination date other than the final date
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| Initial share price: | $64.32
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| Trigger level: | $51.46, 80% of initial price
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| Pricing date: | Feb. 13
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| Settlement date: | Feb. 19
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| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management
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| Fees: | 1.75%
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| Cusip: | 40434F355
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