By Toni Weeks
San Luis Obispo, Calif., June 16 – HSBC USA Inc. priced $1.05 million of 7.75% airbag autocallable yield optimization notes due June 17, 2016 linked to Palo Alto Networks, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
Interest is payable monthly.
The notes will be called automatically at par if Palo Alto Networks 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 Palo Alto Networks shares equal to $1,000 divided by the conversion price. The conversion price is 87% of the initial share price.
HSBC Securities (USA) Inc. is the underwriter. UBS Financial Services Inc. is acting as agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Airbag autocallable yield optimization notes
|
| Underlying stock: | Palo Alto Networks, Inc. (Symbol: PANW)
|
| Amount: | $1,047,000
|
| Maturity: | June 17, 2016
|
| Coupon: | 7.75%, payable monthly
|
| Price: | Par
|
| Payout at maturity: | Par unless final share price is less than conversion price, in which case 6.5364 Palo Alto Networks shares
|
| Call: | Automatically at par if Palo Alto Networks shares close at or above initial share price on any quarterly observation date
|
| Initial share price: | $175.85
|
| Conversion price: | $152.99, 87% of initial share price
|
| Pricing date: | June 12
|
| Settlement date: | June 17
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agent: | UBS Financial Services Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40434E507
|
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