By William Gullotti
Buffalo, N.Y., March 17 – HSBC USA Inc. priced $8.12 million of phoenix quarterly review notes with a memory coupon feature due March 27, 2024 linked to the stock performance of Amazon.com, 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 17.75% if the shares close at or above their 70% coupon barrier on the corresponding observation date. 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 70% trigger level, in which case investors will lose 1% per 1% decline from initial level.
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
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| Underlying stock: | Amazon.com, Inc.
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| Amount: | $8,121,000
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| Maturity: | March 27, 2024
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| Coupon: | 17.75% annual rate, payable quarterly if stock closes at or above coupon barrier on the corresponding observation date; if coupon payment is missed, it will be paid on next coupon payment date that stock closes at or above barrier
|
| Price: | Par
|
| Payout at maturity: | Par plus coupon unless stock finishes below trigger level, in which case full exposure to decline
|
| Call: | At par plus coupon if stock closes at or above initial level on any determination date
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| Initial level: | $90.73
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| Trigger level: | $63.511; 70% of initial level
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| Pricing date: | March 10
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| Settlement date: | March 15
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| Agent: | HSBC Securities (USA) Inc.
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| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 40441XZ45
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