By Angela McDaniels
Tacoma, Wash., June 16 – HSBC USA Inc. priced $3.52 million of contingent income autocallable securities due June 16, 2016 linked to the ordinary shares of Mobileye NV, according to a 424B2 filing with the Securities and Exchange Commission.
If Mobileye shares close at or above the downside threshold level, 70% of the initial share price, on a quarterly determination date, the notes will pay a contingent payment that quarter at an annualized rate of 11.35%.
The notes will be called at par of $10 plus the contingent coupon if Mobileye shares close at or above the initial share price on any quarterly determination date other than the final determination date.
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 receive a number of Mobileye shares equal to $10 divided by the initial share price or, at the issuer’s option, a cash amount equal to the value of those shares.
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: | Mobileye NV (Symbol: MBLY)
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Amount: | $3,522,180
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Maturity: | June 16, 2016
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Coupon: | 11.35% per year, payable quarterly if Mobileye shares close at or above downside threshold level on determination date for that quarter
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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, number of Mobileye shares equal to $10 divided by initial share price or, at issuer’s option, equivalent amount in cash
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Call: | At par plus contingent coupon if Mobileye shares close at or above initial share price on any quarterly determination date other than final determination date
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Initial share price: | $51.56
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Downside threshold: | $36.09, 70% of initial share price
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Pricing date: | June 12
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Settlement date: | June 17
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Agent: | HSBC Securities (USA) Inc.
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Distribution: | Morgan Stanley Smith Barney LLC
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Fees: | 1.75%
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Cusip: | 40434E200
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