By Susanna Moon
Chicago, Aug. 30 – HSBC USA Inc. priced $1.66 million of phoenix quarterly review notes with a memory coupon feature due Sept. 11, 2019 linked to Facebook Inc. stock, according to an FWP filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 10% if the shares close at or above its 72.3% 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 72.3% 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 feature
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| Underlying stock: | Facebook Inc. (Symbol: FB)
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| Amount: | $1,661,000
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| Maturity: | Sept. 11, 2019
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| Coupon: | 10%, payable quarterly if each stock closes at or above 72.3% coupon barrier on observation date for that quarter; If coupon payment is missed, it will be paid on next coupon payment date that stock closes at or above barrier
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| Price: | Par
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| Payout at maturity: | Par unless any stock finishes below 72.3% trigger, in which case 1% loss per 1% decline of worst performing stock
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| Call: | At par if each stock closes at or above initial level on any determination date
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| Initial level: | $174.65
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| Trigger level: | $126.27, 72.3% of initial level
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| Pricing date: | Aug. 24
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| Settlement date: | Aug. 29
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 1%
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| Cusip: | 40435FX93
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