HSBC plans one-year phoenix quarterly review notes tied to Home Depot

By Tali Rackner

Norfolk, Va., Jan. 20 – HSBC USA Inc. plans to price phoenix quarterly review notes due Feb. 15, 2017 linked to the common stock of Home Depot, Inc., according to an FWP filing with the Securities and Exchange Commission.

If Home Depot stock closes at or above the 72.75% coupon barrier level on a quarterly observation date, the issuer will pay a contingent coupon of 10% annualized for that quarter.

If the shares close at or above the initial price on any quarterly observation date, the notes will be called at par plus the contingent coupon.

If the notes are not called and Home Depot shares finish at or above the 72.75% trigger level, the payout at maturity will be par plus the contingent coupon.

Otherwise, investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC and JPMorgan Chase Bank NA are the dealers.

The notes will price on Jan. 22 and settle on Jan. 27.

The Cusip number is 40433UGK6.

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