By Marisa Wong
Morgantown, W.Va., Oct. 9 – HSBC USA Inc. priced $2.69 million of autocallable contingent income barrier notes due Oct. 11, 2016 linked to the common stock of Facebook, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at an annual rate of 11.5% if the stock closes at or above the coupon trigger price, 75% of the initial share price, on the determination date for that quarter.
The notes will be automatically called at par if Facebook stock closes at or above the initial share price on any quarterly call observation date.
If the notes are not called and the final share price is greater than or equal to the 75% barrier price, the payout at maturity will be par. Otherwise, the payout will be a number of Facebook shares equal to $1,000 divided by the initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Autocallable contingent income barrier notes
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| Underlying stock: | Facebook, Inc. (Nasdaq: FB)
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| Amount: | $2.69 million
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| Maturity: | Oct. 11, 2016
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| Coupon: | Each quarter, notes pay contingent coupon at rate of 11.5% per year if Facebook stock closes at or above trigger price on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If Facebook stock finishes at or above barrier price, par plus final coupon; otherwise, number of shares of Facebook stock equal to $1,000 divided by initial share price
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| Call: | Automatically at par plus coupon if Facebook stock closes at or above initial share price on any coupon observation date
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| Initial share price: | $92.80
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| Trigger/barrier price: | $69.60, 75% of initial share price
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| Pricing date: | Oct. 6
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| Settlement date: | Oct. 9
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.5%
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| Cusip: | 40433UBS4
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