HSBC plans phoenix quarterly review notes linked to Bank of America

By Susanna Moon

Chicago, Oct. 19 – HSBC USA Inc. plans to price phoenix quarterly review notes due Nov. 8, 2017 linked to Bank of America Corp. shares, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 11.5% if Bank of America shares close at or above the 75% coupon barrier on an observation date for that quarter.

The notes will be called at par plus the contingent coupon if the shares close at or above the initial price on any quarterly observation date.

The payout at maturity will be par plus the contingent coupon unless Bank of America shares finish below the 75% trigger level, in which case investors will be fully exposed to any losses.

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

The notes will price on Oct. 21 and settle on Oct. 26.

The Cusip number is 40433UYA8.

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