By Toni Weeks
San Luis Obispo, Calif., July 23 – HSBC USA Inc. priced $1.41 million of 9% autocallable yield notes due July 25, 2016 linked to the common stock of Vertex Pharmaceuticals Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
Beginning Jan. 20, 2016, 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 Vertex 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: | Vertex Pharmaceuticals Inc. (Symbol: VRTX)
|
| Amount: | $1.41 million
|
| Maturity: | July 25, 2016
|
| Coupon: | 9%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless stock closes below 60% trigger level during life of the notes and finishes below the initial price, in which case a number of Vertex shares equal to $1,000 divided by initial stock price
|
| Call: | Automatically at par if stock price closes at or above initial price on any quarterly call observation date beginning Jan. 20, 2016
|
| Initial price: | $130.97
|
| Trigger level: | 60% of initial level
|
| Pricing date: | July 21
|
| Settlement date: | July 24
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40433B4F2
|
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