By Marisa Wong
Madison, Wis., June 28 - HSBC USA Inc. priced $10 million of trigger phoenix autocallable optimization securities due June 30, 2016 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
If the index closes at or above the coupon barrier level, 67% of the initial level, on a quarterly observation date, the notes will pay an annualized contingent coupon of 5% that quarter. Otherwise, no coupon will be paid that quarter.
The notes will be automatically called at par plus the contingent coupon if the index closes at or above its initial level on any observation date beginning June 26, 2014.
If the notes are not called, the payout at maturity will be par unless the final index level is less than the 67% trigger level, in which case investors will be fully exposed to the index's decline from the initial level.
HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Trigger phoenix autocallable optimization securities
|
| Underlying index: | S&P 500
|
| Amount: | $10 million
|
| Maturity: | June 30, 2016
|
| Coupon: | If index closes at or above barrier level on quarterly observation date, contingent quarterly coupon of 5% per year; otherwise, no coupon will be paid that quarter
|
| Price: | Par
|
| Payout at maturity: | Par unless final index level is less than trigger level, in which case investors will be fully exposed to index's decline from initial level
|
| Call: | Automatically at par plus contingent coupon if index closes at or above initial level on any observation date beginning June 26, 2014
|
| Initial level: | 1,588.03
|
| Barrier/trigger level: | 1,063.98, 67% of initial level
|
| Pricing date: | June 25
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| Settlement date: | June 28
|
| Agents: | HSBC Securities (USA) Inc. and UBS Financial Services Inc.
|
| Fees: | 1.5%
|
| Cusip: | 40433X530
|
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