HSBC to price phoenix quarterly review notes linked to Citigroup

By Angela McDaniels

Tacoma, Wash., Jan. 22 - HSBC USA Inc. plans to price phoenix quarterly review notes due Feb. 11, 2015 linked to the common stock of Citigroup Inc., according to an FWP filing with the Securities and Exchange Commission.

If Citigroup stock closes at or above the barrier price, 85% of the initial share price, on a quarterly observation date, the issuer will pay a 2.2875% contingent coupon for that quarter, which is equivalent to 9.15% per year.

If the shares close at or above the initial share price on any quarterly observation date, the notes will be called at par plus the contingent coupon.

If the notes are not called and Citigroup shares finish at or above the barrier price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be fully exposed to the decline in the share price.

The final share price will be the average of the stock's closing share prices on the five trading days ending Feb. 26, 2015.

HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC is agent.

The notes will price Jan. 24 and settle Jan. 29.

The Cusip number is 40432XS51.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.