By Kiku Steinfeld
Chicago, Jan. 20 – HSBC USA Inc. priced $1.5 million of phoenix quarterly review notes with memory coupon feature due Feb. 3, 2021 linked to CrowdStrike Holdings, Inc. stock, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent coupon at an annualized rate of 20% if the stock closes at or above its 60% coupon barrier on an observation date for that quarter.
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 final contingent coupon and any previously unpaid coupons unless the stock finishes below the 60% trigger level, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the underwriter, and JPMorgan Chase Bank NA and J.P. Morgan Securities LLC are the placement agents.
| Issuer: | HSBC USA Inc.
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| Issue: | Phoenix quarterly review notes with memory coupon feature
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| Underlying stock: | CrowdStrike Holdings, Inc.
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| Amount: | $1,500,000
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| Maturity: | Feb. 3, 2021
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| Coupon: | 20% annualized, if stock closes at or above 60% coupon barrier on observation date for that quarter
|
| Price: | Par
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| Payout at maturity: | Par plus final coupon and any previously unpaid coupons unless shares finish below trigger price, in which case 1% loss per 1% 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: | $60.25
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| Trigger price: | $36.15, 60% of initial share price
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| Pricing date: | Jan. 15
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| Settlement date: | Jan. 21
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| Underwriter: | HSBC Securities (USA) Inc.
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| Placement agents: | JPMorgan Chase Bank NA and J.P. Morgan Securities LLC
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| Fees: | 1%
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| Cusip: | 40435U3F9
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