HSBC to price memory phoenix quarterly review notes on Alibaba Group

By Sarah Lizee

Olympia, Wash., Feb. 13 – HSBC USA Inc. plans to price phoenix quarterly review notes with a memory coupon feature due March 4, 2020 linked to the American Depositary Shares of Alibaba Group Holding Ltd., according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon of 11.6% annualized if the shares close at or above the 70% coupon barrier on an observation date for that quarter.

If a coupon payment is missed because the shares close below the barrier, it will be paid on the next coupon payment date on which the shares close 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 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 J.P. Morgan Securities LLC and JPMorgan Chase Bank NA are the placement agents.

The notes will price on Feb. 15.

The Cusip number is 40435UGK4.

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