By Wendy Van Sickle
Columbus, Ohio, May 3 – HSBC USA Inc. priced $160,000 of phoenix quarterly review notes with memory coupon due May 15, 2019 linked to Bank of America Corp. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent coupon at an annual rate of 10% if the shares close at or above the 76.58% trigger level on the observation date for that quarter. Any contingent coupon that is not paid will be paid at a later time if the shares close above the trigger level on a subsequent observation date.
The notes will be called at par plus the contingent coupon if the shares close at or above the initial share price on any quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless the shares finish below the 76.58% trigger level on, in which case investors will be fully exposed to the stock decline.
HSBC Securities (USA) Inc. is the underwriter, and JPMorgan Chase Bank NA and J.P. Morgan Securities LLC are the agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Phoenix quarterly review notes with memory coupon
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| Underlying stock: | Bank of America Corp. (Symbol: BAC)
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| Amount: | $160,000
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| Maturity: | May 15, 2019
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| Coupon: | 10% annualized, payable quarterly if shares close at or above trigger level on quarterly observation date; any contingent coupon may be paid at a later time if the shares close above trigger level on a subsequent observation date
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless shares finish below trigger price, in which case full exposure to decline
|
| Call: | At par plus contingent coupon if shares close at or above initial price on any quarterly observation date
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| Initial share price: | $30.15
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| Trigger price: | $23.09, 76.58% of initial share price
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| Pricing date: | April 27
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| Settlement date: | May 2
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| Underwriter: | HSBC Securities (USA) Inc.
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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: | 40435FZT7
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