By Kiku Steinfeld
Chicago, Nov. 8 – HSBC USA Inc. priced $365,000 of phoenix quarterly review notes with a memory coupon feature due April 24, 2024 linked to the common shares of Morgan Stanley, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 9.9% if the shares close at or above their 70% 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 70% trigger level, in which case investors will lose 1.4286% for each 1% that the share price declines beyond 30%.
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 stock: | Morgan Stanley
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| Amount: | $365,000
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| Maturity: | April 24, 2024
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| Coupon: | 9.9% annual rate, payable quarterly if stock closes at or above coupon barrier on observation date for that quarter; coupon payments will include any previously unpaid coupon
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| Price: | Par
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| Payout at maturity: | Par unless stock finishes below trigger level, in which case 1.4286% loss per 1% decline beyond 30%
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| Call: | Automatically at par plus coupon if stock closes at or above initial level on any determination date
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| Initial share price: | $84.19
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| Coupon barrier: | $58.933, or 70% of initial share price
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| Trigger level: | $58.933, or 70% of initial share price
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| Pricing date: | April 6, 2023
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| Settlement date: | April 12, 2023
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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
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| Fees: | 1%
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| Cusip: | 40441X2X7
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