By Wendy Van Sickle
Columbus, Ohio, Nov. 13 – HSBC USA Inc. priced $2.22 million of phoenix quarterly review notes with memory coupon feature due Nov. 21, 2018 linked to the capital stock of Banco Santander, SA, according to a 424B2 filing with the Securities and Exchange Commission.
If the shares close at or above the trigger price, 73% of the initial share price, on a quarterly observation date, the notes will pay a contingent coupon plus any previously unpaid contingent coupons. If the 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 the 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 the shares close at or above the initial share price on any quarterly observation date beginning Feb. 15, 2018.
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
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| Underlying stock: | Banco Santander, SA
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| Amount: | $2,215,000
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| Maturity: | Nov. 21, 2018
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| Coupon: | 10% per year plus any previously unpaid contingent coupons if shares close at or above trigger price on applicable quarterly observation date
|
| 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 stock’s decline
|
| Call: | At par plus contingent coupon if shares close at or above initial price on any quarterly observation date beginning Feb. 15, 2018
|
| Initial share price: | $5.711
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| Trigger price: | $4.16903, 73% of initial share price
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| Pricing date: | Nov. 3
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| Settlement date: | Nov. 8
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| Underwriter: | HSBC Securities (USA) Inc.
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| Agents: | JPMorgan Chase Bank NA and J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 40435FLM7
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