HSBC to price phoenix quarterly review notes linked to Facebook

By Marisa Wong

Morgantown, W.Va., June 20 – HSBC USA Inc. plans to price phoenix quarterly review notes with a memory coupon feature due July 10, 2019 linked to the common stock of Facebook, Inc., according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon of 10% per year if Facebook shares close at or above the 77.57% coupon barrier on the related quarterly observation date.

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 Facebook shares finish below the 77.57% trigger price, 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.

The notes will price on June 22.

The Cusip number is 40435FH83.

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