By Toni Weeks
San Luis Obispo, Calif., Feb. 5 - HSBC USA Inc. priced $3.81 million of 0% return enhanced notes due Feb. 19, 2015 linked to a basket of four equally weighted stocks, according to a 424B2 filing with the Securities and Exchange Commission.
The underlying companies are Actavis plc, Endo Health Solutions Inc., Mylan Inc. and Valeant Pharmaceuticals International, Inc.
The payout at maturity will be par plus 1.5 times any gain in the basket, up to a maximum return of 25.5%.
Investors will be exposed to any losses.
The final basket level will be the average of the component returns, with each component return calculated using the average of the closing prices of the respective stock on five trading days ending Feb. 13, 2015.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Return enhanced notes
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| Underlying stocks: | Actavis plc (Symbol: ACT), Endo Health Solutions Inc. (Symbol: ENDP), Mylan Inc. (Symbol: MYL) and Valeant Pharmaceuticals International, Inc. (Symbol: VRX), equally weighted
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| Amount: | $3.81 million
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| Maturity: | Feb. 19, 2015
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If basket return is positive, par plus 1.5 times basket return; if basket return is negative, 1-to-1 exposure to decline
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| Initial share prices: | $188.98 for Actavis, $65.88 for Endo Health, $45.41 for Mylan and $135.64 for Valeant
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| Final basket level: | Average of component returns, with each component return calculated using the average of the stock's closing prices on five trading days ending Feb. 13, 2015
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| Pricing date: | Jan. 31
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| Settlement date: | Feb. 5
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| Underwriter: | HSBC Securities (USA) Inc.
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| Agent: | J.P. Morgan Securities LLC
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| Fees: | 1%
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| Cusip: | 40432XSA0
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