By Jennifer Chiou
New York, Aug. 12 – HSBC USA Inc. priced $6,429,440 of contingent income autocallable securities due Aug. 13, 2015 linked to the common stock of Biogen Idec Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Biogen Idec shares close at or above the downside threshold level, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 9.4%.
The notes will be called at par of $10 plus the contingent coupon if Biogen Idec shares close at or above the initial share price on any of the first three quarterly determination dates.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will receive a number of Biogen Idec shares equal to $10 divided by the initial share price or, at the issuer’s option, an amount in cash equal to the value of those shares.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is the distributor.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Biogen Idec Inc. (Symbol: BIIB)
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| Amount: | $6,429,440
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| Maturity: | Aug. 13, 2015
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| Coupon: | 9.4% per year, payable quarterly if Biogen Idec 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, a number of Biogen Idec shares equal to $10 divided by initial share price or, at issuer’s option, value of those shares in cash
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| Call: | Automatically at par plus contingent coupon if Biogen Idec shares close at or above initial share price on any quarterly determination date other than final determination date
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| Initial share price: | $324.05
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| Downside threshold: | $243.04, 75% of initial share price
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| Pricing date: | Aug. 8
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| Settlement date: | Aug. 13
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| Agent: | HSBC Securities (USA) Inc.
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| Distributor: | Morgan Stanley Wealth Management
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| Fees: | 1.5%
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| Cusip: | 40434D707
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