By Susanna Moon
Chicago, Nov. 13 – HSBC USA Inc. priced $4.7 million of contingent income autocallable securities due Nov. 14, 2016 linked to MGM Resorts International shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon of at an annual rate of 13.35% if the stock closes at or above its barrier level, 70% of its initial level, on the observation date for that quarter.
The notes will be called at par if the stock closes at or above its initial level on any of the first three determination dates.
The payout at maturity will be par unless the stock finishes below its 70% barrier level, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | MGM Resorts International (Symbol: MGM)
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| Amount: | $4,699,720
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| Maturity: | Nov. 14, 2016
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| Coupon: | 13.35% annualized, payable quarterly, if the stock closes at or above its barrier level on the observation date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | Par unless the stock finishes below barrier level, in which case full exposure to any losses
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| Call: | At par if the stock closes at or above initial level on any of the first three determination dates
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| Initial level: | $23.84
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| Barrier level: | 70% of initial level
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| Pricing date: | Nov. 6
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| Settlement date: | Nov. 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: | 40434K545
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