By Jennifer Chiou
New York, July 29 – HSBC USA Inc. priced $3,633,300 of contingent income autocallable securities due July 30, 2015 linked to Freeport-McMoRan Copper & Gold Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 8.95% if Freeport-McMoRan stock closes at or above the 80% downside threshold 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 share price on any of the first three quarterly determination dates.
If the notes are not called and the stock finishes at or above the 80% downside threshold level, the payout at maturity will be par plus the last coupon. If the stock finishes below the downside threshold level, investors will receive a number of shares equal to $10 divided by the initial share price or, at the issuer’s option, the cash value of those shares.
HSBC Securities (USA) Inc. will be the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Freeport-McMoRan Copper & Gold Inc. (Symbol: RIG)
|
| Amount: | $3,633,300
|
| Maturity: | July 30, 2015
|
| Contingent coupon: | 2.2375% per quarter, payable if Freeport-McMoRan stock closes at or above downside threshold level on determination date for that quarter
|
| 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, number of shares equal to $10 divided by initial share price or, at issuer’s option, equivalent value in cash
|
| 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: | $37.99
|
| Downside threshold: | $30.39, 80% of initial share price
|
| Pricing date: | July 25
|
| Settlement date: | July 30
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40434C147
|
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