By Toni Weeks
San Luis Obispo, Calif., June 11 – HSBC USA Inc. priced $853,000 of 11.25% autocallable yield notes due June 13, 2016 linked to the common stock of United States Steel Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
Beginning Dec. 9, 2015, the notes will be automatically called at par plus the coupon if the stock price closes at or above the initial price on any quarterly call observation date.
A trigger event occurs if the stock price falls below the trigger price, 60% of the initial price, on any day during the life of the notes.
The payout at maturity will be par unless a trigger event occurs and the stock finishes below its initial price, in which case investors will receive a number of U.S. Steel shares equal to $1,000 divided by the initial stock price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying stock: | United States Steel Corp. (NYSE: X)
|
| Amount: | $853,000
|
| Maturity: | June 13, 2016
|
| Coupon: | 11.25%, payable monthly
|
| Price: | Par
|
| Call: | Beginning Dec. 9, 2015, at par plus coupon if stock price closes at or above initial price on any quarterly call observation date
|
| Payout at maturity: | Par, unless stock price falls below trigger price during life of notes and finishes below initial price, in which case a number of U.S. Steel shares equal to $1,000 divided by initial stock price
|
| Initial share price: | $24.68
|
| Trigger price: | 60% of initial price
|
| Pricing date: | June 9
|
| Settlement date: | June 12
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40433B2H0
|
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