By Wendy Van Sickle
Columbus, Ohio, May 11 – HSBC USA Inc. priced $10 million of phoenix quarterly review notes with a memory coupon feature due May 14, 2024 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 12% if the index closes at or above their 87% trigger level on the observation date for that quarter. Previously unpaid coupons, if any, will be automatically included whenever a coupon is paid.
The notes will be called at par plus the contingent coupon if the index closes at or above the initial level on any quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless the index finishes below the 87% trigger level, in which case investors will lose 1.149425% for every 1% decline beyond 13%.
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 fund: | S&P 500 index
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| Amount: | $10 million
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| Maturity: | May 14, 2024
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| Coupon: | 12% annual rate, payable quarterly if index closes at or above trigger level on observation date for that quarter; coupon payment events will automatically include any previously unpaid coupons
|
| Price: | Par
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| Payout at maturity: | Par plus all unpaid coupons unless index finishes below trigger level, in which case 1.149425% loss per 1% decline beyond 13%
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| Call: | Automatically at par plus coupon if index closes at or above initial level on any determination date
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| Initial level: | 4,138.12,
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| Trigger level: | 3,600.1644; 87% of initial level
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| Trade date: | May 9
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| Pricing date: | May 8
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| Settlement date: | May 12
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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: | 0.01%
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| Cusip: | 40447AAY0
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