By Wendy Van Sickle
Columbus, Ohio, June 1 – HSBC USA Inc. priced $5.89 million of contingent income autocallable securities due Dec. 1, 2016 linked to the common stock of Marathon Oil Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Marathon Oil shares close at or above the downside threshold level, 50% of the initial share price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of at 15.8%.
The notes will be called at par of $10 plus the contingent coupon if Marathon Oil shares close at or above the initial share price on any monthly determination date other than the final determination date.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Marathon Oil Corp. (Symbol: MRO)
|
| Amount: | $5,885,410
|
| Maturity: | Dec. 1, 2016
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| Coupon: | 15.8% annualized for each month that stock closes at or above downside threshold level on determination date for that month
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus contingent coupon if stock finishes at or above downside threshold; otherwise, 1% loss for each 1% shares fall from initial price
|
| Call: | At par plus contingent payment if stock closes at or above initial share price on any monthly determination date other than the final one
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| Initial level: | $12.90
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| Downside threshold: | $6.45, 50% of initial price
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| Pricing date: | May 27
|
| Settlement date: | June 2
|
| Agent: | UBS Securities LLC with Morgan Stanley Wealth Management handling distribution
|
| Fees: | 0.8%
|
| Cusip: | 40434V889
|
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