By Angela McDaniels
Tacoma, Wash., Aug. 30 – HSBC USA Inc. priced $2.15 million of phoenix quarterly review notes due Sept. 13, 2017 linked to the common stock of Kroger Co., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 10% per year if Kroger stock closes at or above the barrier price, 80% of the initial share price, on the observation date for that quarter.
The notes will be called at par plus the contingent coupon if Kroger shares close at or above the initial share price on any quarterly observation date.
If the notes are not called and Kroger shares finish at or above the barrier price, the payout at maturity will be par plus the contingent coupon. Otherwise, investors will be exposed to the decline in the share price.
HSBC Securities (USA) Inc. is the underwriter, and J.P. Morgan Securities LLC and JPMorgan Chase Bank NA are placement agents.
Issuer: | HSBC USA Inc.
|
Issue: | Phoenix quarterly review notes
|
Underlying stock: | Kroger Co. (Symbol: KR)
|
Amount: | $2,151,000
|
Maturity: | Sept. 13, 2017
|
Coupon: | 10% per year, payable quarterly if Kroger stock closes at or above barrier price on observation date for that quarter
|
Price: | Par
|
Payout at maturity: | If Kroger shares finish at or above barrier price, par plus contingent coupon; otherwise, exposure to decline in share price
|
Call: | Automatically at par plus contingent coupon if Kroger shares close at or above initial share price on any quarterly observation date
|
Initial share price: | $32.68
|
Barrier price: | $26.14, 80% of initial share price
|
Pricing date: | Aug. 26
|
Settlement date: | Aug. 31
|
Underwriter: | HSBC Securities (USA) Inc.
|
Agents: | J.P. Morgan Securities LLC and JPMorgan Chase Bank NA
|
Fees: | 1%
|
Cusip: | 40433UTU0
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.