By Toni Weeks
San Luis Obispo, Calif., June 10 – HSBC USA Inc. priced $500,000 of 0% uncapped trigger return enhanced notes due Dec. 9, 2015 linked to the common stock of Pfizer Inc., according to a 424B2 filing with the Securities and Exchange Commission.
A trigger event will occur if Pfizer’s closing share price is less than 95% of the initial share price on any day during the three-month period ending Sept. 5.
If a trigger event occurs and the final share price is greater than the initial share price, the payout at maturity will be par plus 210% of the stock return.
If a trigger event does not occur and the final share price is greater than the initial share price, the payout will be par plus the stock return.
If the final share price is less than the initial share price, investors will have one-to-one exposure to the decline.
The final stock price will be the average of Pfizer’s closing share prices on the five trading days ending Dec. 4, 2015.
HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Uncapped trigger return enhanced notes
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| Underlying stock: | Pfizer Inc.
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| Amount: | $500,000
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| Maturity: | Dec. 9, 2015
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If trigger event occurs and stock return is positive, par plus 210% of return; if trigger even does not occur and final stock price is greater than initial share price, par plus stock return; if final price is less than initial price, full exposure to share price decline
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| Initial price: | $29.42
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| Trigger event: | Occurs if closing share price is less than 95% of initial price on any day until Sept. 5
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| Pricing date: | June 6
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| Settlement date: | June 11
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| Underwriter: | HSBC Securities (USA) Inc.
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| Agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
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| Fees: | 1.25%
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| Cusip: | 40433BED6
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