By Susanna Moon
Chicago, Aug. 11 – HSBC USA Inc. priced $4.02 million of contingent income autocallable securities due Aug. 15, 2016 linked to Tesla Motors, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Tesla shares close at or above the barrier level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annual rate of 16.5%.
The notes will be called at par of $10 plus the contingent coupon if Tesla shares close at or above the initial share price on any of the first three determination dates.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below the barrier level, in which case investors will receive a number of Tesla shares equal to $10 divided by the initial share price or, at the issuer’s option, the cash equivalent.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Tesla Motors, Inc. (Symbol: TSLA)
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| Amount: | $4,022,390
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| Maturity: | Aug. 15, 2016
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| Contingent payment: | 16.5% annualized if Tesla Motors stock closes at or above downside threshold level on quarterly determination date
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| Price: | Par of $10
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| Payout at maturity: | Par plus contingent coupon if Tesla Motors stock finishes at or above barrier; otherwise, a number of Tesla shares equal to $10 divided by initial share price
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| Call: | At par plus contingent payment if Tesla Motors stock closes at or above initial share price on any of the first three determination dates
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| Initial level: | $242.51
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| Trigger level: | $181.88, 75% of initial price
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| Pricing date: | Aug. 7
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| Settlement date: | Aug. 12
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| Agent: | HSBC Securities (USA) Inc.
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| Dealer: | Morgan Stanley Wealth Management
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| Fees: | 1.25%
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| Cusip: | 40434E598
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