By Tali Rackner
Norfolk, Va., March 8 – HSBC USA Inc. priced $1.97 million of contingent income autocallable securities due March 10, 2017 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 13% if the shares close at or above the 60% downside threshold level on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial price on any of the first three determination dates.
The payout at maturity will be par plus the final coupon unless the shares finish below the 60% downside threshold, 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: | Las Vegas Sands Corp. (Symbol: FB)
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| Amount: | $1,969,500
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| Maturity: | March 10, 2017
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| Coupon: | 13% per year, payable quarterly if Las Vegas Sands shares close at or above downside threshold level on determination date for that quarter
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| Price: | Par of $10
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, full exposure to any losses
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| Call: | At par plus contingent coupon if Las Vegas Sands shares close at or above initial share price on any of the first three determination dates
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| Initial share price: | $51.80
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| Downside threshold: | $31.08, 60% of initial share price
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| Pricing date: | March 4
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| Settlement date: | March 9
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Wealth Management
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| Fees: | 1.75%
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| Cusip: | 40434N630
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