HSBC to price phoenix quarterly review notes linked to MGM Resorts

By Angela McDaniels

Tacoma, Wash., Feb. 24 – HSBC USA Inc. plans to price phoenix quarterly review notes due March 16, 2016 linked to the common stock of MGM Resorts International, according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 14.21% per year if MGM 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 MGM shares close at or above the initial share price on any quarterly observation date.

If the notes are not called and MGM 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 March 11, 2016.

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 Feb. 27 and settle March 4.

The Cusip number is 40433BF86.

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