By Toni Weeks
San Luis Obispo, Calif., Dec. 4 - HSBC USA Inc. priced $3.33 million of contingent income autocallable securities due Dec. 5, 2016 linked to Mosaic Co. shares, according to a 424B2 filing with the Securities and Exchange Commission.
If Mosaic stock closes at or above the 75% downside threshold level on a quarterly determination date, the notes will pay a contingent payment at an annual rate of 9.6% for that quarter.
If the stock closes at or above the initial share price on any of the first 11 quarterly determination dates, the notes will be redeemed at par of $10 plus the contingent payment.
If the notes are not called, the payout at maturity will be par plus the contingent payment unless the stock finishes below the 75% downside threshold level, in which case the payout will be a number of Mosaic shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent.
HSBC Securities (USA) Inc. is the agent with distribution through Morgan Stanley Wealth Management.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | Mosaic Co. (Symbol: MOS)
|
| Amount: | $3,334,100
|
| Maturity: | Dec. 5, 2016
|
| Coupon: | 9.6% annualized for each quarter that shares close at or above downside threshold level on quarterly determination date
|
| Price: | Par
|
| Payout at maturity: | Par plus any contingent coupon unless stock finishes below downside threshold level, in which case a number of Mosaic shares equal to $10 divided by the initial share price or, at the issuer's option, the cash equivalent
|
| Call: | At par plus the contingent coupon if stock closes at or above the initial level on any of first 11 quarterly determination dates
|
| Initial level: | $47.90
|
| Downside threshold: | $35.93, 75% of initial level
|
| Pricing date: | Nov. 29
|
| Settlement date: | Dec. 4
|
| Agent: | HSBC Securities (USA) Inc.
|
| Dealer: | Morgan Stanley Wealth Management
|
| Fees: | 2.25%
|
| Cusip: | 40434B727
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
