By Marisa Wong
Madison, Wis., Sept. 23 – HSBC USA Inc. priced $4.62 million of contingent income autocallable securities due Sept. 24, 2015 linked to Baidu, Inc. American Depositary Shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.9% if the shares close at or above the 75% downside threshold level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the shares close at or above the initial share price on any of the first three quarterly determination dates.
If the notes are not called and the shares finish at or above the downside threshold level, the payout at maturity will be par plus the final coupon.
If the shares finish below the downside threshold level, the payout will be a number of shares equal to $10 divided by the initial price or, at the issuer’s option, the cash value of those shares.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management will handle distribution.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying ADS: | Baidu, Inc. (Symbol: BIDU)
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| Amount: | $4,615,910
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| Maturity: | Sept. 24, 2015
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| Coupon: | Each quarter, notes pay contingent coupon at annual rate of 11.9% if Baidu shares close at or above downside threshold level on determination date for that quarter
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| Price: | Par
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent interest payment, if any; otherwise, a number of shares equal to $10 divided by initial price or, at issuer’s option, cash value of those shares
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| Call: | Automatically at par plus contingent coupon if Baidu shares close at or above initial share price on any of first three quarterly determination dates
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| Initial share price: | $224.93
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| Downside threshold: | $168.70, 75% of initial share price
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| Pricing date: | Sept. 19
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| Settlement date: | Sept. 24
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| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management handling distribution
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| Fees: | 1.25%
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| Cusip: | 40434D616
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