By Jennifer Chiou
New York, Jan. 26 – HSBC USA Inc. priced $1,096,000 of phoenix quarterly review notes due Feb. 10, 2016 linked to the common stock of AbbVie Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 12% per year if AbbVie stock closes at or above the barrier price, 80% of the initial share price, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if AbbVie shares close at or above the initial share price on any quarterly observation date.
If the notes are not called and AbbVie 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. 5, 2016.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC is the placement agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Phoenix quarterly review notes
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| Underlying stock: | AbbVie Inc. (Symbol: ABBV)
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| Amount: | $1,096,000
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| Maturity: | Feb. 10, 2016
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| Coupon: | 12% per year, payable quarterly if AbbVie shares close at or above barrier price on quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if AbbVie shares finish at or above barrier price; otherwise, full exposure to decline
|
| Call: | At par plus contingent coupon if AbbVie shares close at or above initial share price on any quarterly observation date beginning on May 7
|
| Initial share price: | $62.43
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| Barrier price: | $49.94, 80% of initial share price
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| Pricing date: | Jan. 23
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| Settlement date: | Jan. 28
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| Underwriter: | HSBC Securities (USA) Inc.
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| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 40433BYF9
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