By Angela McDaniels
Tacoma, Wash., Aug. 5 – HSBC USA Inc. priced $3 million of autocallable contingent income barrier notes due Aug. 5, 2016 linked to the common stock of Halliburton Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 10.25% per year if Halliburton stock closes at or above the barrier level, 80% of the initial share price, on the determination date for that quarter.
The notes will be automatically called at par plus the coupon if Halliburton stock closes at or above the initial share price on any coupon observation date.
If the notes are not called and Halliburton stock finishes at or above the barrier level, the payout at maturity will be par plus the final coupon. Otherwise, the payout will be a number of shares of the stock equal to $1,000 divided by the initial share price.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying stock: | Halliburton Co. (NYSE: HAL)
|
| Amount: | $2,997,000
|
| Maturity: | Aug. 5, 2016
|
| Coupon: | Each quarter, notes pay contingent coupon at rate of 10.25% per year if Halliburton stock closes at or above barrier level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If Halliburton stock finishes at or above barrier level, par plus final coupon; otherwise, number of shares of Halliburton stock equal to $1,000 divided by initial share price
|
| Call: | Automatically at par plus coupon if Halliburton stock closes at or above initial share price on any coupon observation date
|
| Initial share price: | $41.79
|
| Barrier level: | $33.43, 80% of initial share price
|
| Pricing date: | July 31
|
| Settlement date: | Aug. 5
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40433B5R5
|
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