Chicago, Nov. 13 – HSBC USA Inc. priced $3.31 million of contingent income autocallable securities due June 3, 2016 linked to Netflix, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent monthly coupon of at an annual rate of 19.4% if the stock closes at or above its downside threshold level, 70% of its initial level, on the observation date for that month.
The notes will be called at par if the stock closes at or above its initial level on any of the first five monthly determination dates.
The payout at maturity will be par unless the stock finishes below its 70% downside threshold 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: | Netflix, Inc. (Symbol: NFLX)
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| Amount: | $3,309,070
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| Maturity: | June 3, 2016
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| Coupon: | 19.4% annualized, payable monthly, if the stock closes at or above its downside threshold level on the observation date for that month
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| Price: | Par of $10
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| Payout at maturity: | Par unless the stock finishes below downside threshold level, in which case full exposure to any losses
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| Call: | Automatically at par if the stock closes at or above initial level on any of the first five determination dates
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| Initial level: | $123.33
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| Downside threshold level: | $86.33, 70% of initial level
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| Pricing date: | Nov. 30
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| Settlement date: | Dec. 3
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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: | 40434K438
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