By Marisa Wong
Madison, Wis., Oct. 9 – HSBC USA Inc. priced $8.53 million of contingent income autocallable securities due Oct. 8, 2015 linked to United States Steel Corp. 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 13.5% if U.S. Steel stock closes at or above the 70% downside threshold level on the determination date for that quarter.
The notes will be called at par plus the contingent coupon if the stock closes at or above the initial level on any of the first three quarterly determination dates.
If the notes are not called and U.S. Steel stock finishes at or above the 70% downside threshold, the payout at maturity will be par plus the contingent payment.
Otherwise, investors will receive a number of shares of U.S. Steel stock equal to $10 divided by the initial share price or, at the issuer’s option, the cash value of those shares.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Smith Barney LLC handling distribution.
| Issuer: | HSBC USA Inc.
|
| Issue: | Contingent income autocallable securities
|
| Underlying stock: | United States Steel Corp. (Symbol: X)
|
| Amount: | $8,529,980
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| Maturity: | Oct. 8, 2015
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| Contingent coupon: | 13.5% annualized for each quarter that U.S. Steel stock closes at or above downside threshold level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If stock finishes at or above downside threshold level, par plus contingent payment; otherwise U.S. Steel shares equal to $10 divided by the initial share price or cash equivalent
|
| Call: | At par plus contingent payment if stock closes at or above initial level on any of first three quarterly determination dates
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| Initial share price: | $36.34
|
| Downside threshold: | $25.44, 70% of initial share price
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| Pricing date: | Oct. 3
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| Settlement date: | Oct. 8
|
| Agent: | HSBC Securities (USA) Inc. with Morgan Stanley Smith Barney LLC handling distribution
|
| Fees: | 1.75%
|
| Cusip: | 40434D566
|
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