HSBC plans 10% memory phoenix quarterly review notes linked to BofA

New York, Aug. 25 – HSBC USA Inc. plans to price 10% phoenix quarterly review notes with a memory coupon feature due May 15, 2019 linked to the common stock of Bank of America Corp., according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon of 10% annualized if Bank of America shares close at or above the 76.58% coupon barrier on an observation date for that quarter.

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

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

The payout at maturity will be par plus the contingent coupon unless Bank of America shares finish below the 76.58% trigger price, in which case investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the underwriter, and JPMorgan is the placement agent.

The notes will price on April 27 and settle on May 2.

The Cusip number is 40435FZT7.

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