By Susanna Moon
Chicago, Oct. 30 - HSBC USA Inc. priced $6.31 million of contingent income autocallable securities due Oct. 30, 2014 linked to the Facebook Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 12% if stock closes at or above its 60% 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 level on any of the first three determination dates.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below the 60% barrier level, in which case investors will receive a number of Facebook shares equal to par of $10.00 divided by the initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Facebook Inc. (Nasdaq: FB)
|
| Amount: | $6,305,000
|
| Maturity: | Oct. 30, 2014
|
| Coupon: | 12% annualized for each quarter that shares close at or above barrier level on quarterly determination date
|
| Price: | Par
|
| Payout at maturity: | Par plus any contingent coupon unless stock finishes below barrier level, in which case | Facebook shares
|
| Call: | At par plus the contingent coupon if stock closes at or above the initial level on any of first three review dates
|
| Initial level: | $51.96
|
| Barrier level: | $31.18, 60% of initial level
|
| Pricing date: | Oct. 25
|
| Settlement date: | Oct. 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40434B701
|
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