By Wendy Van Sickle
Columbus, Ohio, April 18 – HSBC USA Inc. priced $10 million of phoenix quarterly review notes with a memory coupon feature due April 17, 2024 linked to the Nasdaq-100 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 12.85% if the index closes at or above its 85% trigger level on the observation date for that quarter. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be called at par plus the contingent coupon if the index closes at or above the initial level on any quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless the index finishes below the 85% trigger level, in which case investors will lose 1.1765% for every 1% decline beyond 15%.
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 with memory coupon
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| Underlying index: | Nasdaq-100
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| Amount: | $10 million
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| Maturity: | April 17, 2024
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| Coupon: | 12.85% annual rate, payable quarterly if index closes at or above trigger level on observation date for that quarter; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
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| Payout at maturity: | Par plus all unpaid coupons unless index finishes below trigger level, in which case 1.1765% loss per 1% decline beyond 15%
|
| Call: | Automatically at par plus coupon if index closes at or above initial level on any determination date
|
| Initial level: | 12,964.15
|
| Trigger level: | 11,019.5275; 85% of initial level
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| Trade date: | April 12
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| Pricing date: | April 11
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| Settlement date: | April 17
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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: | 0.1%
|
| Cusip: | 40441X5B2
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