By Marisa Wong
Madison, Wis., May 13 - HSBC USA Inc. priced $1.76 million of trigger phoenix autocallable optimization securities due May 16, 2018 linked to the common stock of Lincoln National Corp., according to a 424B2 filing with the Securities and Exchange Commission.
If Lincoln National stock closes at or above the coupon barrier, 68.86% of the initial share price, on a monthly observation date, the issuer will pay a contingent coupon for that month at a rate of 8% per year. Otherwise, no coupon will be paid that month.
If the shares close at or above the initial price on any monthly observation date after one year, the notes will be called at par of $10 plus the contingent coupon.
If the notes are not called and Lincoln National shares finish at or above the 68.86% trigger price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the share price decline from the initial price.
HSBC Securities (USA) Inc. is the underwriter. UBS Financial Services Inc. is the dealer.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying stock: | Lincoln National Corp. (Symbol: LNC)
|
| Amount: | $1,755,780
|
| Maturity: | May 16, 2018
|
| Coupon: | 8% per year, payable monthly if stock closes at or above barrier price on monthly observation date; otherwise, no coupon will be paid that month
|
| Price: | Par of $10
|
| Payout at maturity: | If Lincoln National shares finish at or above trigger price, par plus contingent coupon; otherwise, full exposure to share price decline from initial price
|
| Call: | Par plus contingent coupon if shares close at or above initial price on any monthly observation date after one year
|
| Initial price: | $34.86
|
| Barrier/trigger price: | $24.00, 68.86% of initial price
|
| Pricing date: | May 10
|
| Settlement date: | May 15
|
| Underwriter: | HSBC Securities (USA) Inc. with UBS Financial Services Inc. as dealer
|
| Fees: | 2.5%
|
| Cusip: | 40433X720
|
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