By Wendy Van Sickle
Columbus, Ohio, Feb. 3 – HSBC USA Inc. priced $1.06 million of contingent income autocallable securities due Aug. 3, 2016 linked to the common stock of Palo Alto Networks, Inc., according to a 424B2 filed with Securities and Exchange Commission.
The notes will pay a contingent monthly coupon at an annual rate of 17% if Palo Alto Networks shares close at or above the coupon barrier level, 75% of the initial share price, on the determination date for that month.
The notes will be called at par of $10 plus the contingent coupon if Palo Alto Networks shares close at or above the initial share price on any of the first five determination dates.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below the 75% trigger level, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Palo Alto Networks, Inc.
|
| Amount: | $1,061,300
|
| Maturity: | Aug. 3, 2016
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| Coupon: | 17% per year, payable monthly if shares close at or above coupon barrier level on determination date for that month
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if shares finish at or above trigger level; otherwise, 1% loss for every 1% that final share price is less than the initial price
|
| Call: | At par plus contingent payment if shares close at or above initial price on any of first five determination dates
|
| Initial price: | $149.49
|
| Trigger/coupon barrier: | $112.12, 75% of initial price
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| Pricing date: | Jan. 29
|
| Settlement date: | Feb. 3
|
| Agent: | HSBC Securities (USA) Inc.
|
| Distribution: | Morgan Stanley Wealth Management
|
| Fees: | 1.25%
|
| Cusip: | 40434N507
|
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