By Marisa Wong
Morgantown, W.Va., March 11 – HSBC USA Inc. priced $1.67 million of autocallable contingent income barrier notes due March 15, 2017 linked to the common stock of Facebook Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Facebook shares close at or above the barrier price, 75% of the initial share price, on a quarterly determination date, the notes will pay a contingent coupon that quarter at a rate of 13% per year.
The notes will be called at par plus the contingent coupon if Facebook shares close at or above the initial share price on any quarterly coupon determination date.
If the final share price is greater than or equal to the barrier price, the payout at maturity will be par plus the final contingent coupon. 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: | $1.67 million
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| Maturity: | March 15, 2017
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| Coupon: | Each quarter, notes pay contingent coupon at rate of 13% 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: | $107.32
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| Trigger/barrier price: | $80.49, 75% of initial share price
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| Pricing date: | March 10
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| Settlement date: | March 15
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1.25%
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| Cusip: | 40433UJP2
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