By Toni Weeks
San Luis Obispo, Calif., Jan. 28 - HSBC USA Inc. priced $1.09 million of phoenix quarterly review notes due Feb. 11, 2015 linked to the common stock of Citigroup Inc., according to a 424B2 filing with the Securities and Exchange Commission.
If Citigroup stock closes at or above the barrier price, 85% of the initial share price, on a quarterly observation date, the issuer will pay a 2.2875% contingent coupon for that quarter, which is equivalent to 9.15% per year.
If the shares close at or above the initial share price on any quarterly observation date, the notes will be called at par plus the contingent coupon.
If the notes are not called and Citigroup shares finish at or above the barrier price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be fully exposed to the decline in the share price.
The final share price will be the average of the stock's closing share prices on the five trading days ending Feb. 6, 2015.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC is agent.
| Issuer: | HSBC USA Inc.
|
| Issue: | Phoenix quarterly review notes
|
| Underlying stock: | Citigroup, Inc. (Symbol: C)
|
| Amount: | $1,093,000
|
| Maturity: | Feb. 11, 2015
|
| Coupon: | 9.15% per year (2.2875% per quarter) if Citigroup shares close at or above barrier price on quarterly observation date
|
| Price: | Par of $1,000
|
| Payout at maturity: | Par plus contingent coupon if Citigroup shares finish at or above barrier price; otherwise, full exposure to decline
|
| Call: | At par plus contingent coupon if Citigroup shares close at or above initial share price on May 8, Aug. 7, 2014, Nov. 6, 2014 or Feb. 6, 2015
|
| Initial share price: | $49.33
|
| Barrier price: | $41.93, 85% of initial share price
|
| Pricing date: | Jan. 24
|
| Settlement date: | Jan. 29
|
| Underwriter: | HSBC Securities (USA) Inc.
|
| Agent: | J.P. Morgan Securities LLC
|
| Fees: | 1%
|
| Cusip: | 40432XS51
|
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