By Emma Trincal
New York, Nov. 9 – HSBC USA Inc. priced $3.27 million of phoenix quarterly review notes with a memory coupon feature due Nov. 23, 2022 linked to the common shares of Meta Platforms, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon plus any previously unpaid coupons at the annual rate of 10% if the share price closes at or above its coupon threshold level, 67.6% of its initial level, on the related determination date.
The notes will be redeemed early at par plus the contingent coupon if the index closes above its initial level on any quarterly redemption determination date.
The payout at maturity will be par plus the contingent coupon unless the final share price closes below the 67.6% trigger level, in which case investors will be fully exposed to any losses.
The final share price will be the average of the prices of the five averaging dates – Nov. 14, 2022, Nov. 15, Nov. 16, Nov. 17, and Nov. 18.
HSBC Securities (USA) Inc. is the underwriter, and JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Phoenix quarterly review notes with memory coupon
|
| Underlying stock: | Meta Platforms, Inc.,
|
| Amount: | $3,270,000
|
| Maturity: | Nov. 23, 2022
|
| Coupon: | 10% annual rate, payable quarterly if stock closes at or above coupon barrier on observation date for that quarter; coupon payments will include any previously unpaid coupons
|
| Price: | Par
|
| Payout at maturity: | Par unless stock finishes below trigger level, in which case 1% loss per 1% decline from initial level
|
| Call: | Automatically at par plus coupon if stock closes at or above initial level on any quarterly determination date
|
| Initial level: | $341.13
|
| Coupon threshold level: | $230.60388; 67.6% of initial level
|
| Trigger level: | $230.60388; 67.6% of initial level
|
| Pricing date: | Nov. 5
|
| Settlement date: | Nov. 10
|
| Agent: | HSBC Securities (USA) Inc.
|
| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 40439JSC0
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
