By Marisa Wong
Morgantown, W.Va., July 6 – HSBC USA Inc. priced $888,000 of phoenix quarterly review notes with a memory coupon feature due July 10, 2019 linked to the common stock of Facebook, Inc., according to a 424B2 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.
| Issuer: | HSBC USA Inc.
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| Issue: | Phoenix quarterly review notes with memory coupon
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| Underlying stock: | Facebook, Inc. (Symbol: FB)
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| Amount: | $888,000
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| Maturity: | July 10, 2019
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| Coupon: | 10% annualized, payable quarterly if shares close at or above coupon barrier on related quarterly observation date; if a coupon 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
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| Price: | Par
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| Payout at maturity: | Par plus contingent coupon unless shares finish below trigger price, in which case full exposure to decline
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| Call: | At par plus contingent coupon if shares close at or above initial price on any quarterly observation date
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| Initial share price: | $201.74
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| Coupon barrier: | $156.49, 77.57% of initial share price
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| Trigger price: | $156.49, 77.57% of initial share price
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| Pricing date: | June 22
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| Settlement date: | June 27
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| Underwriter: | HSBC Securities (USA) Inc. with JPMorgan Chase Bank NA and J.P. Morgan Securities LLC as placement agents
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| Fees: | 1%
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| Cusip: | 40435FH83
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