By Toni Weeks
San Luis Obispo, Calif., May 1 – HSBC USA Inc. priced $6.8 million of 7% airbag autocallable yield optimization notes due April 29, 2016 linked to the common stock of Community Health Systems, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Interest will be payable monthly.
The notes will be called automatically at par if Community Health shares close at or above the initial share price on any quarterly observation date.
The payout at maturity will be par unless the final share price is less than the conversion price, in which case the payout will be a number of Community Health shares equal to $1,000 divided by the conversion price. The conversion price will be 80% of the initial share price.
HSBC Securities (USA) Inc. is the underwriter, and UBS Financial Services Inc. is the agent.
Issuer: | HSBC USA Inc.
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Issue: | Airbag autocallable yield optimization notes
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Underlying stock: | Community Health Systems, Inc. (Symbol: CYH)
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Amount: | $6,797,000
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Maturity: | April 29, 2016
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Coupon: | 7%, payable monthly
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Price: | Par
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Payout at maturity: | Par unless final share price is less than conversion price, in which case 22.8676 Community Health shares
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Call: | Automatically at par if Community Health shares close at or above initial share price on any quarterly observation date
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Initial share price: | $54.66
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Conversion price: | $43.73, 80% of initial share price
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Pricing date: | April 28
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Settlement date: | April 30
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Underwriter: | HSBC Securities (USA) Inc.
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Agent: | UBS Financial Services Inc.
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Fees: | 1.5%
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Cusip: | 40434G429
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