By Susanna Moon
Chicago, Jan. 7 - HSBC USA Inc. priced $2.15 million contingent income autocallable securities due Jan. 8, 2015 linked to Broadcom Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Broadcom stock closes at or above the 75% barrier level on a quarterly determination date, the notes will pay a contingent payment at an annual rate of 8.6% for that quarter.
If the stock closes at or above the initial share price on any of the first three quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below the 75% downside threshold level, in which case the payout will be a number of Broadcom shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is the dealer.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Broadcom Corp. (Symbol: BRCM)
|
| Amount: | $2,152,500
|
| Maturity: | Jan. 8, 2015
|
| Coupon: | 8.6% annualized for each quarter that Broadcom shares close at or above downside threshold level on quarterly review date
|
| 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, a number of Broadcom shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent
|
| Call: | At par plus contingent payment if shares close at or above initial price on any of first three quarterly determination dates
|
| Initial share price: | $28.97
|
| Downside threshold: | $21.73, 75% of initial share price
|
| Pricing date: | Jan. 3
|
| Settlement date: | Jan. 8
|
| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management as dealer
|
| Fees: | 1.5%
|
| Cusip: | 40434B529
|
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