By Marisa Wong
Madison, Wis., July 21 – HSBC USA Inc. priced $1.49 million of contingent income autocallable securities due July 21, 2016 linked to LinkedIn Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.25% if the shares close at or above the 75% downside threshold level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any of the first three quarterly determination dates.
The payout at maturity will be par plus the final coupon unless the shares finish below the 75% downside threshold level, in which case investors will receive a number of LinkedIn shares equal to $10 divided by the initial price or, at the issuer’s option, the cash equivalent.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income auto-callable securities
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| Underlying stock: | LinkedIn Corp. (Symbol: LNKD)
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| Amount: | $1,488,450
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| Maturity: | July 21, 2016
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| Coupon: | 11.25% annualized for each quarter that 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 stock finishes at or above downside threshold level; otherwise, LinkedIn shares equal to $10 divided by the initial price
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| Call: | At par plus contingent payment if stock closes at or above initial share price on any of first three determination dates
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| Initial price: | $224.95
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| Downside threshold: | $168.71, 75% of initial price
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| Pricing date: | July 17
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| Settlement date: | July 22
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| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management handling distribution
|
| Fees: | 1.75%
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| Cusip: | 40434E747
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