Published on 3/3/2014 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $1 million 12.6% autocallable yield notes linked to three gaming stocks
By Angela McDaniels
Tacoma, Wash., March 3 - HSBC USA Inc. priced $1 million of 12.6% autocallable yield notes due March 3, 2015 linked to the common stocks of Las Vegas Corp., Melco Crown Entertainment Ltd. and Wynn Resorts, Ltd., according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be called at par if each stock closes at or above its initial price on May 29, 2014, Aug. 28, 2014, Nov. 28, 2014 or Feb. 26, 2015.
The payout at maturity will be par unless the final share price of any stock is below its trigger price, 70% of its initial price, in which case investors will be fully exposed to the decline of the worst-performing stock.
HSBC Securities (USA) Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
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| Underlying stocks: | Las Vegas Corp. (NYSE: LVS), Melco Crown Entertainment Ltd. (Nasdaq: MPEL) and Wynn Resorts, Ltd. (Nasdaq: WYNN)
|
| Amount: | $1 million
|
| Maturity: | March 3, 2015
|
| Coupon: | 12.6%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par unless final share price of any stock is below its trigger price, in which case full exposed to decline of worst-performing stock
|
| Call: | Automatically at par if each stock closes at or above its initial price on May 29, 2014, Aug. 28, 2014, Nov. 28, 2014 or Feb. 26, 2015
|
| Initial share prices: | $83.16 for Las Vegas Sands, $41.75 for Melco and $236.89 for Wynn
|
| Trigger levels: | $58.212 for Las Vegas Sands, $29.225 for Melco and $165.823 for Wynn, 70% of initial prices
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| Pricing date: | Feb. 26
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| Settlement date: | March 3
|
| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1%
|
| Cusip: | 40432XU41
|
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