By Wendy Van Sickle
Columbus, Ohio, Feb. 3 – HSBC USA Inc. priced $3.45 million of contingent income autocallable securities due Feb. 6, 2017 linked to the common stock of Walgreens Boots Alliance, Inc., according to a 424B2 filed with Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 10.3% if the shares close at or above the downside threshold level, 80% of the initial share price, on the determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if the shares close at or above the initial share price on any of the first three determination dates.
The payout at maturity will be par plus the final contingent coupon unless the stock finishes below the 80% downside threshold level, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is handling distribution.
Issuer: | HSBC USA Inc.
|
Issue: | Contingent income autocallable securities
|
Underlying stock: | Palo Alto Networks, Inc.
|
Amount: | $3,487,600
|
Maturity: | Feb. 6, 2017
|
Coupon: | 10.3% per year, payable quarterly if shares close at or above downside threshold level on determination date for that quarter
|
Price: | Par of $10
|
Payout at maturity: | Par plus contingent coupon if shares finish at or above trigger level; otherwise, 1% loss for every 1% that final share price is less than the initial price
|
Call: | At par plus contingent payment if shares close at or above initial price on any of first three determination dates
|
Initial price: | $79.72
|
Downside threshold: | $63.78, 80% of initial price
|
Pricing date: | Jan. 29
|
Settlement date: | Feb. 3
|
Agent: | HSBC Securities (USA) Inc.
|
Distribution: | Morgan Stanley Wealth Management
|
Fees: | 1.75%
|
Cusip: | 40434N408
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.