HSBC eyes memory phoenix quarterly review notes on Health Care Select

By Sarah Lizee

Olympia, Wash., Jan. 9 – HSBC USA Inc. plans to price phoenix quarterly review notes with a memory coupon feature due Jan. 29, 2020 linked to the Health Care Select Sector SPDR fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon of 8.23% annualized if the fund closes at or above the 80% coupon barrier on an observation date for that quarter.

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

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

The payout at maturity will be par plus the contingent coupon unless the fund finishes 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.

The notes will price on Jan. 11.

The Cusip number is 40435UEG5.

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