By Toni Weeks
San Luis Obispo, Calif., Jan. 21 – HSBC USA Inc. priced $132,000 of autocallable contingent income barrier notes due April 25, 2016 linked to the Market Vectors Gold Miners exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 11% if the fund closes at or above the barrier level, 65% of the initial level, on the determination date for that quarter.
The notes will be called at par plus the coupon if the fund closes at or above the initial price on any quarterly observation date.
If the notes are not called and the fund finishes at or above the 65% trigger level, the payout at maturity will be par. Otherwise, investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable contingent income barrier notes
|
| Underlying fund: | Market Vectors Gold Miners ETF
|
| Amount: | $132,000
|
| Maturity: | April 25, 2016
|
| Coupon: | 11%, payable quarterly if fund closes at or above trigger level on determination date for that quarter
|
| Price: | Par
|
| Payout at maturity: | If fund finishes at or above 65% barrier level, par; otherwise, full exposure to losses
|
| Initial level: | $22.94
|
| Trigger/barrier level: | $14.91, 65% of initial price
|
| Pricing date: | Jan. 20
|
| Settlement date: | Jan. 23
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40433BYB8
|
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