By Susanna Moon
Chicago, July 13 – HSBC USA Inc. priced $2.3 million of 5.6% worst-of autocallable fixed-rate notes due Jan. 17, 2017 linked to the Russell 2000 index and the iShares MSCI EAFE ETF, according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable quarterly.
The notes will be called at par plus the coupon if each underlying component closes at or above its initial level on any interest payment date.
The payout at maturity will be par unless any component finishes below the 80% barrier level, in which case investors will lose 1.25% for each 1% decline of the worst performing component.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
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| Issue: | Worst-of autocallable fixed-rate notes
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| Underlyings: | Russell 2000 index and the iShares MSCI EAFE ETF
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| Amount: | $2.3 million
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| Maturity: | Jan. 17, 2017
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| Coupon: | 5.6%, payable quarterly
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| Price: | Par
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| Payout at maturity: | Par unless any component falls by more than 20%, in which case 1.25% loss per 1% decline of worst performing component, with full exposure to any losses
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| Call: | At par plus coupon if each underlying component closes at or above initial level on any interest payment date
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| Initial levels: | 1,252.021 for Russell and $64.30 for iMSCI EAFE
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| Barrier levels: | 80% of initial levels
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| Pricing date: | July 10
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| Settlement date: | July 15
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| Underwriter: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40433B4D7
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