By Wendy Van Sickle
Columbus, Ohio, May 11 – HSBC USA Inc. priced $1 million of phoenix quarterly review notes with a memory coupon feature due May 23, 2024 linked to the common shares of Zoom Video Communications, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 29.75% if the shares close at or above their 70% coupon barrier on the 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 that the stock closes at or above the barrier.
The notes will be 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 the shares finish below the 70% 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
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| Underlying stock: | Zoom Video Communications, Inc.
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| Amount: | $1 million
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| Maturity: | May 23, 2024
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| Coupon: | 29.75% annual rate, payable quarterly if stock closes at or above coupon barrier on observation date for that quarter; coupon payments will include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | Par plus all unpaid coupons unless stock finishes below trigger level, in which case 1% loss per 1% decline from initial level
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| Call: | Automatically at par plus coupon if stock closes at or above initial level on any determination date
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| Initial level: | $63.40
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| Trigger level: | $44.38; 70% of initial level
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| Trade date: | May 8
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| Pricing date: | May 5
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| Settlement date: | May 11
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| Agent: | 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: | 40447AAU8
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