By Toni Weeks
San Diego, Jan. 8 - HSBC USA Inc. priced $1 million of 0% trigger autocallable optimization securities due Jan. 10, 2018 linked to the iShares Russell 2000 index fund, according to a 424B2 filing with the Securities and Exchange Commission.
If the closing share price is greater than the initial price on any quarterly observation date after one year, the notes will be called at par plus an annualized call return of 9%.
If the notes are not called and the final price is greater than or equal to 59% of the initial price, the payout at maturity will be par. Otherwise, investors will share fully in losses.
HSBC Securities (USA) Inc. is the underwriter, and UBS Financial Services is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger autocallable optimization securities
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| Underlying fund: | iShares Russell 2000 index fund
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| Amount: | $1 million
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| Maturity: | Jan. 10, 2018
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| Coupon: | 0%
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| Price: | Par of $10
|
| Payout at maturity: | If final price is at least 59% of initial level, par; otherwise, full exposure to losses
|
| Call: | Automatically at par plus 9% per year if shares close at or above initial level on any quarterly observation date after one year; first observation date is Jan. 10, 2014
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| Initial price: | $87.13
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| Trigger price: | $51.41, 59% of initial price
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| Pricing date: | Jan. 4
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| Settlement date: | Jan. 9
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| Underwriter: | HSBC Securities (USA) Inc. with UBS Financial Services Inc. as agent
|
| Fees: | 2.5%
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| Cusip: | 40433T448
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