By Susanna Moon
Chicago, Sept. 22 – HSBC USA Inc. priced $1.93 million of contingent income autocallable securities due Sept. 26, 2016 linked to Valero Energy 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 10.6% if the shares close at or above the 70% barrier 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 determination dates.
The payout at maturity will be par plus the final coupon unless the shares finish below the 70% barrier level, in which case investors will receive a number of Valero 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 autocallable securities
|
| Underlying stock: | Valero Energy Corp. (Symbol: VLO)
|
| Amount: | $1.93 million
|
| Maturity: | Sept. 26, 2016
|
| Coupon: | 10.6% annualized for each quarter that stock closes at or above barrier level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if stock finishes at or above barrier level; otherwise, number of Valero shares equal to $10 divided by the initial price
|
| Call: | At par plus contingent payment if stock closes at or above initial share price on any of the first three determination dates
|
| Initial level: | $59.91
|
| Barrier level: | 70% of initial level
|
| Pricing date: | Sept. 18
|
| Settlement date: | Sept. 23
|
| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management handling distribution
|
| Fees: | 1.25%
|
| Cusip: | 40434K842
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
