By Susanna Moon
Chicago, Dec. 16 - HSBC USA Inc. priced $12.4 million of contingent income autocallable securities due Dec. 18, 2014 linked to Facebook Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Facebook stock closes at or above the 70% downside threshold level on a quarterly determination date, the notes will pay a contingent payment at an annual rate of 16% 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 70% downside threshold level, in which case the payout will be a number of Facebook 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 with distribution through Morgan Stanley Wealth Management.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Facebook Inc. (Nasdaq: FB)
|
| Amount: | $12,400,470
|
| Maturity: | Dec. 18, 2014
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| Coupon: | 16% annualized for each quarter that shares close at or above downside threshold level on quarterly determination date
|
| Price: | Par
|
| Payout at maturity: | Par plus any contingent coupon unless stock finishes below downside threshold level, in which case a number of Facebook shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent
|
| Call: | At par plus the contingent coupon if stock closes at or above the initial level on any of first three quarterly determination dates
|
| Initial level: | $53.32
|
| Downside threshold: | $37.32, 70% of initial level
|
| Pricing date: | Dec. 13
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| Settlement date: | Dec. 18
|
| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management as dealer
|
| Fees: | 1.5%
|
| Cusip: | 40434B628
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