By William Gullotti
Buffalo, N.Y., June 28 – HSBC USA Inc. priced $3 million of phoenix quarterly review notes due June 24, 2024 linked to the common shares of Shopify 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 43% if the shares close at or above their 60% coupon barrier on the observation date for that quarter.
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 if the stock finishes at or above its coupon barrier.
If the stock finishes below its coupon barrier but at or above the 50% trigger level, the payout will be par. Otherwise, investors will be fully exposed to the stock’s decline from its initial level.
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
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| Underlying stock: | Shopify Inc.
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| Amount: | $3 million
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| Maturity: | June 24, 2024
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| Coupon: | 43% annual rate, payable quarterly if stock closes at or above coupon barrier on observation date for that quarter
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| Price: | Par
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| Payout at maturity: | If the stock finishes at or above coupon barrier, par plus final coupon; if the stock finishes below its coupon barrier but at or above trigger level, par; otherwise, full exposure to the stock’s 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: | $317.21
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| Coupon barrier level: | $190.326; 60% of initial level
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| Trigger level: | $158.605; 50% of initial level
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| Strike date: | June 17
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| Pricing date: | June 21
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| Settlement date: | June 23
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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: | 0.7%
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| Cusip: | 40441XBX7
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