HSBC to price phoenix quarterly review notes with memory coupon on Citi

By Sarah Lizee

Olympia, Wash., Feb. 6 – HSBC USA Inc. plans to price phoenix quarterly review notes with a memory coupon feature due Feb. 24, 2021 linked to the common stock of Citigroup Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annualized rate of 10% if the shares close at or above its 76.5% coupon barrier on the observation date for that quarter. If a coupon payment is missed because the stock closes below the barrier, it will be paid on the next coupon payment date that the stock closes at or above the barrier.

The notes will be called at par plus the contingent coupon if the shares close at or above the initial price on any quarterly observation date.

The payout at maturity will be par plus the contingent coupon unless the shares finish below the 76.5% trigger level, in which case investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the underwriter, and JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.

The notes will price on Feb. 7.

The Cusip number is 40435U5W0.

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