By Tali Rackner
Norfolk, Va., Jan. 25 – HSBC USA Inc. priced $1.53 million of phoenix quarterly review notes due Feb. 15, 2017 linked to the common stock of Home Depot, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Home Depot stock closes at or above the 72.75% coupon barrier level on a quarterly observation date, the issuer will pay a contingent coupon of 10% annualized for that quarter.
If the shares close at or above the initial price on any quarterly observation date, the notes will be called at par plus the contingent coupon.
If the notes are not called and Home Depot shares finish at or above the 72.75% trigger level, the payout at maturity will be par plus the contingent coupon.
Otherwise, investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC and JPMorgan Chase Bank NA are the dealers.
| Issuer: | HSBC USA Inc.
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| Issue: | Phoenix quarterly review notes
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| Underlying stock: | Home Depot, Inc. (Symbol: HD)
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| Amount: | $1.53 million
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| Maturity: | Feb. 15, 2017
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| Coupon: | 10% annualized if Home Depot shares close at or above barrier level on quarterly observation date
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| Price: | Par of $1,000
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| Payout at maturity: | Par plus contingent coupon if Home Depot shares finish at or above trigger level; otherwise, full exposure to any losses
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| Call: | At par plus contingent coupon if Home Depot shares close at or above initial share price on any quarterly observation date
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| Initial share price: | $122.76
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| Trigger/coupon barrier price: | $92.38, 75.25% of initial share price
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| Pricing date: | Jan. 22
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| Settlement date: | Jan. 27
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| Underwriter: | HSBC Securities (USA) Inc.
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| Agents: | J.P. Morgan Securities LLC and JPMorgan Chase Bank NA
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| Fees: | 1%
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| Cusip: | 40433UGK6
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