By Angela McDaniels
Tacoma, Wash., March 4 – HSBC USA Inc. priced $3.97 million contingent coupon autocallable notes due March 16, 2016 linked to the common stock of MGM Resorts International, according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a coupon at the rate of 14.21% per year if MGM stock closes at or above the barrier price, 80% of the initial share price, on the observation date for that quarter.
The notes will be automatically called at par plus the contingent coupon if MGM stock closes at or above the initial share price on any quarterly call observation date.
If the notes are not called and the final share price is greater than or equal to the barrier price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be fully exposed to the stock’s decline.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as placement agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent coupon autocallable notes
|
| Underlying stock: | MGM Resorts International (Symbol: MGM)
|
| Amount: | $3,973,000
|
| Maturity: | March 16, 2016
|
| Coupon: | Paid quarterly at rate of 14.21% per year if MGM stock closes at or above barrier price on observation date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If final share price is greater than or equal to barrier price, par plus contingent coupon; otherwise, full exposure to stock’s decline
|
| Call: | Automatically at par plus contingent coupon if MGM stock closes at or above initial share price on any quarterly call observation date
|
| Initial share price: | $21.73
|
| Barrier price: | $17.38, 80% of initial share price
|
| Pricing date: | Feb. 27
|
| Settlement date: | March 4
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Placement agent: J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 40433BF86
|
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