By Angela McDaniels
Tacoma, Wash., March 2 – HSBC USA Inc. priced $15.67 million of 0% Accelerated Return Notes due April 22, 2016 linked to basket of three energy sector stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The basket includes Exxon Mobil Corp. with a 33.34% weight, Occidental Petroleum Corp. with a 33.33% weight and Hess Corp. with a 33.33% weight.
If the final basket level is greater than the initial basket level, the payout at maturity will be par of $10 plus 300% of the basket return, subject to a cap of 16.35%. If the final basket level is less than the initial basket level, investors will be fully exposed to the decline.
BofA Merrill Lynch is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Accelerated Return Notes
|
| Underlying stocks: | Exxon Mobil Corp. (33.34% weight; NYSE: XOM), Occidental Petroleum Corp. (33.33% weight; NYSE: OXY) and Hess Corp. (33.33% weight; NYSE: HES)
|
| Amount: | $15,673,690
|
| Maturity: | April 22, 2016
|
| Coupon: | 0%
|
| Price: | Par
|
| Payout at maturity: | Par plus 300% of any basket gain, up to 16.35% maximum return; exposure to any basket decline
|
| Initial share prices: | $88.65 for Exxon Mobil, $78.32 for Occidental Petroleum and $75.43 for Hess
|
| Pricing date: | Feb. 26
|
| Settlement date: | March 5
|
| Underwriter: | BofA Merrill Lynch
|
| Fees: | 2%
|
| Cusip: | 40434F322
|
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