Published on 2/9/2023 in the Prospect News Structured Products Daily.
New Issue: HSBC prices $2.03 million phoenix quarterly review notes on Alphabet
Chicago, Feb. 9 – HSBC USA Inc. priced $2.03 million of phoenix quarterly review notes with a memory coupon feature due May 17, 2023 linked to Alphabet Inc. stock, according to an FWP filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 14.25% if the shares close at or above its 75% coupon barrier on the observation date for that quarter. Previously unpaid coupons will also be paid.
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 75% 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.
| Issuer: | HSBC USA Inc.
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| Issue: | Phoenix quarterly review notes
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| Underlying stock: | Alphabet Inc. (Symbol: GOOG)
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| Amount: | $2,030,000
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| Maturity: | May 17, 2023
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| Coupon: | 14.25% annual rate, payable quarterly if stock closes at or above 75% coupon barrier on observation date for that quarter; previously unpaid coupons will also be paid
|
| Price: | Par
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| Payout at maturity: | Par unless stock finishes below 75% trigger, in which case 1% loss per 1% decline
|
| Call: | At par if stock closes at or above initial level on any determination date
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| Initial level: | $2,282.19
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| Coupon barrier level: | $1,711.6425, 75% of initial level
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| Trigger level: | $1,711.6425, 75% of initial level
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| Pricing date: | April 29, 2022
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| Settlement date: | May 4, 2022
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1%
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| Cusip: | 40439JZ99
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