By Susanna Moon
Chicago, Feb. 19 – HSBC USA Inc. priced $545,000 of 9.5% annualized autocallable reverse convertible notes due Feb. 19, 2016 linked to Tenet Healthcare Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be called at par if the stock closes above its initial level on any quarterly review date beginning Aug. 14, 2015.
The payout at maturity will be par unless the stock ever falls below the barrier level – 68% of the initial share price – during the life of the notes and finishes below the initial share price, in which case the payout will be a number of Tenet shares equal to par divided by the initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable reverse convertible notes
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| Underlying stock: | Tenet Healthcare Corp. (Symbol: THC)
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| Amount: | $545,000
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| Maturity: | Feb. 19, 2016
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| Coupon: | 9.5%, payable quarterly
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| Price: | Par
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| Payout at maturity: | If stock ever closes below barrier level during the life of the notes and final share price is less than initial share price, 22.5734 Tenet shares; otherwise, par
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| Call: | At par if stock closes above the initial level on any quarterly review date beginning Aug. 14, 2015
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| Initial share price: | $44.30
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| Barrier price: | 68% of initial share price
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| Pricing date: | Feb. 13
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| Settlement date: | Feb. 19
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40433BA81
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