HSBC plans one-year phoenix quarterly review notes linked to Valeant

By Susanna Moon

Chicago, Jan. 22 – HSBC USA Inc. plans to price phoenix quarterly review notes due Feb. 10, 2016 linked to Valeant Pharmaceuticals International, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

If Valeant stock closes at or above the 65% trigger level on a quarterly observation date, the issuer will pay a contingent coupon of 13.5% annualized for that quarter.

If the shares close at or above the initial price on any quarterly observation date, the notes will be called at par of $10 plus the contingent coupon.

If the notes are not called and Valeant shares finish at or above the trigger level, the payout at maturity will be par plus the contingent coupon.

Otherwise, investors will be fully exposed to any losses.

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

The notes will price on Jan. 23 and settle on Jan. 28.

The Cusip number is 40433BYG7.

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