By Jennifer Chiou
New York, Sept. 19 – HSBC USA Inc. priced $1.1 million of autocallable contingent interest barrier notes due March 22, 2016 linked to the common stock of Gilead Sciences, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Gilead Sciences stock closes at or above the trigger price – 80% of the initial share price – on a quarterly review date, the issuer will pay a contingent coupon for that quarter at the rate of 15%. Otherwise, no coupon will be paid that quarter.
If the shares close at or above the initial price on a quarterly review date beginning on Dec. 22, the notes will be called at par plus the contingent coupon.
If the notes are not called and Gilead Sciences shares finish at or above the 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.
Issuer: | HSBC USA Inc.
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Issue: | Autocallable contingent interest barrier notes
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Underlying stock: | Gilead Sciences, Inc. (Nasdaq: GILD)
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Amount: | $1.1 million
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Maturity: | March 22, 2016
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Coupon: | 15%, payable quarterly if stock closes at or above trigger price on review date for that quarter
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Price: | Par
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Payout at maturity: | Par plus contingent coupon if Gilead Sciences shares finish at or above trigger price; otherwise, par plus stock return
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Call: | Automatically at par plus contingent coupon if Gilead Sciences shares close at or above initial price on a quarterly review date beginning on Dec. 22
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Initial share price: | $103.84
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Trigger price: | $83.07, 80% of initial price
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Pricing date: | Sept. 17
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Settlement date: | Sept. 22
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Underwriter: | HSBC Securities (USA) Inc.
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Fees: | 1.15%
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Cusip: | 40433BNU8
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