By Devika Patel
Knoxville, Tenn., Oct. 18 – HSBC USA Inc. priced $1.08 million of phoenix quarterly review notes due Nov. 1, 2017 linked to the common stock of Bank of America Corp., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 10.8% per year if Bank of America stock closes at or above the barrier price, 75% of the initial share price, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if Bank of America shares close at or above the initial share price on any quarterly observation date.
If the notes are not called and Bank of America shares finish at or above the barrier price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will lose 1% for each 1% decline in the share price.
JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are placement agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Phoenix quarterly review notes
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| Underlying stock: | Bank of America Corp. (Symbol: BAC)
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| Amount: | $1.08 million
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| Maturity: | Nov. 1, 2017
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| Coupon: | 10.8% annualized if Bank of America shares close at or above barrier level on quarterly observation date
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| Price: | Par of $1,000
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| Payout at maturity: | Par plus contingent coupon if Bank of America shares finish at or above barrier price; otherwise, 1% loss for each 1% decline
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| Call: | At par plus contingent coupon if Bank of America shares close at or above initial share price on any quarterly observation date
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| Initial share price: | $16.00
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| Trigger/coupon barrier price: | $12.00, 75% of initial share price
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| Pricing date: | Oct. 14
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| Settlement date: | Oct. 19
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| Agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
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| Fees: | 1%
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| Cusip: | 40433UXU5
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