HSBC plans memory phoenix quarterly review notes tied to Ulta Beauty

By Tali Rackner

Minneapolis, Aug. 10 – HSBC USA Inc. plans to price phoenix quarterly review notes with a memory coupon feature due Aug. 29, 2018 linked to the common stock of Ulta Beauty, Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon of 10% annualized if Ulta shares close at or above the 69.75% coupon barrier on an observation date for that quarter.

If a coupon payment is missed because the stock closes below the barrier, it will be paid on the next coupon payment date on which the stock closes at or above the barrier.

The notes will be automatically 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 Ulta shares finish below the 69.75% trigger price, in which case investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the underwriter, and JPMorgan is the placement agent.

The notes will price on Aug. 11 and settle on Aug. 16.

The Cusip number is 40435FEG8.

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