By Toni Weeks
San Luis Obispo, Calif., Oct. 3 - HSBC USA Inc. priced $1.56 million of contingent income autocallable securities due Oct. 3, 2016 linked to Las Vegas Sands 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 9% if Las Vegas Sands stock closes at or above the 75% downside threshold level on the determination date for that quarter.
If the shares close at or above the initial stock price on any of the first 11 quarterly determination dates, the notes will be called at par plus the contingent coupon.
The payout at maturity will be par unless Las Vegas Sands stock finishes below the downside threshold price, in which case investors will receive a number of shares of Las Vegas Sands stock equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management as distributor.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Las Vegas Sands Corp. (Symbol: LVS)
|
| Amount: | $1,564,200
|
| Maturity: | Oct. 3, 2016
|
| Coupon: | 9% annualized for each quarter that shares close at or above downside threshold on quarterly determination date
|
| Price: | Par of $10
|
| Payout at maturity: | Par plus any contingent coupon unless stock finishes below downside threshold level, in which case number of Las Vegas Sands shares equal to $10 divided by initial share price
|
| Call: | At par plus the contingent coupon if stock closes at or above the initial share price on any of the first 11 determination dates
|
| Initial price: | $66.42
|
| Downside threshold: | $49.82, 75% of initial level
|
| Pricing date: | Sept. 30
|
| Settlement date: | Oct. 3
|
| Agent: | HSBC Securities (USA) Inc.; distribution through Morgan Stanley Wealth Management
|
| Fees: | 2.25%
|
| Cusip: | 40433X167
|
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