By Susanna Moon
Chicago, May 1 - HSBC USA Inc. priced $1.31 million of 11% autocallable yield notes due May 4, 2015 linked to the Valeant Pharmaceuticals International, Inc., according to an FWP filing with the Securities and Exchange Commission.
Interest is payable quarterly.
The notes will be called at par if the stock closes at or above its initial level on any quarterly call date beginning Oct. 30.
A trigger event will occur if the shares fall by more than 30% on any day during the life of the notes.
The payout at maturity will be par unless a trigger event has occurred and the stock finishes below its initial level, in which case investors will be exposed to any losses.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Autocallable yield notes
|
| Underlying stock: | Valeant Pharmaceuticals International, Inc. (Symbol: VRX)
|
| Amount: | $1,313,000
|
| Maturity: | May 4, 2015
|
| Coupon: | 11%, payable quarterly
|
| Price: | Par
|
| Payout at maturity: | Par unless stock ever dips below trigger level during life of notes and return is negative, in which case par plus return
|
| Call: | At par if stock closes at or above initial level on any quarterly call observation date beginning Oct. 30
|
| Initial level: | $133.63
|
| Trigger level: | 70% of initial level
|
| Pricing date: | April 29
|
| Settlement date: | May 2
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | None
|
| Cusip: | 40432XYL9
|
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