By Wendy Van Sickle
Columbus, Ohio, March 6 – HSBC USA Inc. priced $2.05 million of phoenix quarterly review notes due March 14, 2018 linked Concho Resources Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent coupon at an annual rate of 13.3% if Concho stock closes at or above the 70% coupon barrier on an observation date for that quarter.
The notes will be called at par of $10 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 Concho shares finish below the 70% 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 is the distributor.
| Issuer: | HSBC USA Inc.
|
| Issue: | Phoenix quarterly review notes
|
| Underlying stock: | Concho Resources Inc.
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| Amount: | $2,045,000
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| Maturity: | March 14, 2018
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| Coupon: | 13.3% annualized if shares close at or above 70% coupon barrier on quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if shares finish at or above trigger level; otherwise, full exposure to any losses
|
| Call: | At par plus contingent coupon if shares close at or above initial share price on any quarterly observation date
|
| Initial share price: | $133.28
|
| Trigger level: | $93.296, 70% of initial share price
|
| Pricing date: | Feb. 24
|
| Settlement date: | March 1
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 40433US64
|
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