By Jennifer Chiou
New York, March 19 - HSBC USA Inc. priced $6,206,800 of contingent income autocallable securities due March 19, 2015 linked to Transocean Ltd. 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 10.5% if Transocean stock closes at or above the 80% barrier level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial share price on any of the first three quarterly determination dates.
If the notes are not called and the stock finishes at or above the 80% downside threshold level, the payout at maturity will be par plus the last coupon.
If the stock finishes below the downside threshold level, investors will receive a number of shares equal to $10 divided by the initial share price or, at the issuer's option, the cash value of those shares.
HSBC Securities (USA) Inc. will be the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Transocean Ltd. (Symbol: RIG)
|
| Amount: | $6,206,800
|
| Maturity: | March 19, 2015
|
| Contingent coupon: | 10.5% annualized for each Transocean stock closes at or above barrier level on determination date for that quarter
|
| Price: | Par of $10
|
| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus contingent payment; otherwise, number of shares equal to $10 divided by initial share price or, at issuer's option, equivalent value in cash
|
| Call: | At par plus contingent payment if shares close at or above initial price on of first three quarterly determination date
|
| Initial share price: | $38.84
|
| Barrier level: | $31.07, 80% of initial share price
|
| Pricing date: | March 14
|
| Settlement date: | March 19
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40434C808
|
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