By Angela McDaniels
Tacoma, Wash., March 12 – HSBC USA Inc. priced $450,000 of phoenix quarterly review notes with memory coupon feature due March 25, 2020 linked to the common stock of Lloyds Banking Group plc, according to a 424B2 filing with the Securities and Exchange Commission.
If Lloyds shares close at or above the trigger price, 71.75% of the initial share price, on a quarterly observation date, the notes will pay a contingent coupon plus any previously unpaid contingent coupons. If Lloyds shares close below the trigger price, no coupon will be paid that quarter. The contingent coupon rate is 10% per year.
The payout at maturity will be par plus the contingent coupon unless Lloyds shares finish below the trigger price, in which case investors will be fully exposed to the stock’s decline.
The notes will be automatically called at par plus the contingent coupon if Lloyds shares close at or above the initial share price on any quarterly observation date.
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.
|
| Issue: | Phoenix quarterly review notes with memory coupon feature
|
| Underlying stock: | Lloyds Banking Group plc (Symbol: LLOY)
|
| Amount: | $450,000
|
| Maturity: | March 25, 2020
|
| Coupon: | 10% per year plus any previously unpaid contingent coupons if Lloyds shares close at or above trigger price on applicable quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon unless Lloyds shares finish below trigger price, in which case full exposure to stock’s decline
|
| Call: | At par plus contingent coupon if shares close at or above initial price on any quarterly observation date
|
| Initial share price: | £61.87
|
| Trigger price: | £44.39, 71.75% of initial share price
|
| Final share price: | Average of stock’s closing share prices on five trading days ending March 20, 2020
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| Pricing date: | March 8
|
| Settlement date: | March 13
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agents: | JPMorgan Chase Bank NA and J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 40435UJJ4
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