HSBC plans to price phoenix quarterly review notes linked to Kroger

By Angela McDaniels

Tacoma, Wash., Aug. 23 – HSBC USA Inc. plans to price phoenix quarterly review notes due Sept. 13, 2017 linked to the common stock of Kroger Co., according to an FWP filing with the Securities and Exchange Commission.

Each quarter, the notes will pay a contingent coupon at the rate of 10% per year if Kroger stock closes at or above the barrier price, 80% of the initial share price, on the observation date for that quarter.

The notes will be called at par plus the contingent coupon if Kroger shares close at or above the initial share price on any quarterly observation date.

If the notes are not called and Kroger shares finish at or above the barrier price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the decline in the share price.

HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC and JPMorgan Chase Bank NA are placement agents.

The notes will price Aug. 26.

The Cusip number is 40433UTU0.

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