By Jennifer Chiou
New York, Nov. 26 – HSBC USA Inc. priced $1,305,000 of phoenix quarterly review notes due Dec. 9, 2015 linked to the common stock of Biogen Idec Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Biogen Idec stock closes at or above the barrier price, 75% of the initial share price, on a quarterly observation date, the issuer will pay a 2.9375% contingent coupon for that quarter, which is equivalent to 11.75% per year.
If the shares close at or above the initial share price on any quarterly observation date, the notes will be called at par plus the contingent coupon.
If the notes are not called and Biogen Idec shares finish at or above the barrier price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be fully exposed to the decline in the share price.
The final share price will be the average of the stock's closing share prices on the five trading days ending Dec. 4, 2015.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC is agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Phoenix quarterly review notes
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| Underlying stock: | Biogen Idec Inc. (Nasdaq: BIIB)
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| Amount: | $1,305,000
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| Maturity: | Dec. 9, 2015
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| Coupon: | 11.75% per year (2.9375% per quarter) if Biogen Idec shares close at or above barrier price on quarterly observation date
|
| Price: | Par
|
| Payout at maturity: | Par plus contingent coupon if Biogen Idec shares finish at or above barrier price; otherwise, full exposure to decline
|
| Call: | At par plus contingent coupon if Biogen Idec shares close at or above initial share price on any quarterly observation date beginning on March 5
|
| Initial share price: | $303.55
|
| Barrier price: | $227.66, 75% of initial share price
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| Pricing date: | Nov. 21
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| Settlement date: | Nov. 26
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 40433BTX6
|
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