By Wendy Van Sickle
Columbus, Ohio, April 19 – HSBC USA Inc. priced $1.52 million of contingent income autocallable securities due Oct. 20, 2016 linked to the American depositary shares of Baidu, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Baidu shares close at or above the downside threshold level, 75% of the initial share price, on a monthly determination date, the notes will pay a contingent payment that month at an annualized rate of 14.65%.
The notes will be called at par of $10 plus the contingent coupon if Baidu shares close at or above the initial share price on any of the first five monthly determination dates.
If the final share price is greater than or equal to the downside threshold level, the payout at maturity will be par plus the final contingent coupon. Otherwise, investors will be fully exposed to the decline in the shares.
HSBC Securities (USA) Inc. is the agent with Morgan Stanley Wealth Management handling distribution.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Baidu, Inc. (Symbol: BIDU)
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| Amount: | $1,516,800
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| Maturity: | Oct. 20, 2016
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| Coupon: | 14.65% per year, payable monthly if Baidu shares close at or above downside threshold level on determination date for that month
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| Price: | Par of $10.00
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| Payout at maturity: | If final share price is greater than or equal to downside threshold level, par plus final contingent coupon; otherwise, full exposure to decline in shares
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| Call: | At par plus contingent coupon if Baidu shares close at or above initial share price on any of the first five monthly determination dates
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| Initial share price: | $193.22
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| Downside threshold: | $144.92, 75% of initial share price
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| Pricing date: | April 15
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| Settlement date: | April 20
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| Agent: | HSBC Securities (USA) Inc.
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| Distribution: | Morgan Stanley Smith Barney LLC
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| Fees: | 1.25%
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| Cusip: | 40434N382
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