By Wendy Van Sickle
Columbus, Ohio, Nov. 7 – HSBC USA Inc. priced $6.52 million of phoenix quarterly review notes with a memory coupon feature due Nov. 16, 2018 linked to Celgene Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon of 15% annualized if Celgene shares close at or above the 80% coupon barrier on the 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 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 Celgene shares finish below the 80% 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 placement agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Phoenix quarterly review notes with memory coupon
|
| Underlying stock: | Celgene Corp.
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| Amount: | $6,519,000
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| Maturity: | Nov. 16, 2018
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| Coupon: | 15% per year, payable quarterly if Celgene shares close at or above 80% coupon barrier on 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 barrier
|
| Price: | Par
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| Payout at maturity: | Par plus the contingent coupon unless Celgene shares finish below trigger level, in which case investors will be fully exposed to any losses
|
| Call: | At par plus the contingent coupon if the shares close at or above the initial price on any quarterly observation date
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| Initial price: | $100.04
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| Barrier/trigger level: | 80.032, 80% of initial price
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| Pricing date: | Nov. 3
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| Settlement date: | Nov. 8
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| Underwriter: | HSBC Securities (USA) Inc.
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| Placement agents: | J.P. Morgan Securities LLC and JPMorgan Chase Bank NA
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| Fees: | 1%
|
| Cusip: | 40435FLL9
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