By Susanna Moon
Chicago, Dec. 23 – HSBC USA Inc. priced $3.19 million of contingent income autocallable securities due Dec. 24, 2015 linked to Valero Energy Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly payment at an annualized rate of 12.1% if Valero shares close at or above the 75% barrier level on a determination date for that quarter.
The notes will be called at par of $10 plus the contingent coupon if Valero shares close at or above the initial share price on any of the first three quarterly determination dates.
If the stock finishes at or above the barrier level, the payout at maturity will be par plus the final contingent coupon.
Otherwise, investors will receive a number of Valero shares equal to $10 divided by the initial share price or, at the issuer’s option, the cash equivalent.
HSBC Securities (USA) Inc. is the agent. Morgan Stanley Smith Barney LLC is handling distribution.
| Issuer: | HSBC USA Inc.
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| Issue: | Contingent income autocallable securities
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| Underlying stock: | Valero Energy Corp. (Symbol: VLO)
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| Amount: | $3,186,440
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| Maturity: | Dec. 24, 2015
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| Coupon: | 12.1% per year, payable quarterly if Valero shares close at or above barrier level on determination date for that quarter
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| Price: | Par of $10.00
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| Payout at maturity: | If stock finishes at or above barrier level, par plus final contingent coupon; otherwise, number of Valero shares equal to $10 divided by initial share price
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| Call: | At par plus contingent coupon if Valero shares close at or above initial share price on any of first three quarterly determination dates
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| Initial share price: | $48.88
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| Barrier level: | $36.66, 75% of initial share price
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| Pricing date: | Dec. 19
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| Settlement date: | Dec. 24
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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: | 40434F769
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