HSBC plans phoenix quarterly review notes tied to Bristol-Myers Squibb

By Toni Weeks

San Luis Obispo, Calif., Dec. 2 – HSBC USA Inc. plans to price phoenix quarterly review notes due Dec. 23, 2015 linked to the common stock of Bristol-Myers Squibb Co., according to an FWP filing with the Securities and Exchange Commission.

If Bristol-Myers stock closes at or above the barrier price, 85% of the initial share price, on a quarterly observation date, the issuer will pay a contingent coupon for that quarter equivalent to 10.2% 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 Bristol-Myers 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 Dec. 18, 2015.

HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC and JPMorgan Chase Bank NA are placement agents.

The notes are expected to price Dec. 4 and settle Dec. 9.

The Cusip number is 40433BTF5.

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