By Wendy Van Sickle
Columbus, Ohio, Sept. 20 – HSBC USA Inc. priced $715,000 of phoenix quarterly review notes due Oct. 4, 2017 linked to the common stock of Gilead Sciences, Inc., according to a 424B2 filing with the Securities and Exchange Commission.
Each quarter, the notes will pay a contingent coupon at the rate of 14.6% per year if Gilead Sciences 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 Gilead Sciences shares close at or above the initial share price on any quarterly observation date.
If the notes are not called and Gilead Sciences 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.
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| Issue: | Phoenix quarterly review notes
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| Underlying stock: | Gilead Sciences, Inc. (Symbol: GILD)
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| Amount: | $715,000
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| Maturity: | Oct. 4, 2017
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| Coupon: | 14.6% annualized if Gilead Sciences shares close at or above barrier level on quarterly observation date
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| Price: | Par of $1,000
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| Payout at maturity: | Par plus contingent coupon if Gilead Sciences shares finish at or above barrier price; otherwise, full exposure to any losses
|
| Call: | At par plus contingent coupon if Gilead Sciences shares close at or above initial share price on any quarterly observation date
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| Initial share price: | $78.80
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| Trigger/coupon barrier price: | $63.04, 80% of initial share price
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| Pricing date: | Sept. 16
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| Settlement date: | Sept. 21
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| Underwriter: | HSBC Securities (USA) Inc.
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| Agents: | J.P. Morgan Securities LLC and JPMorgan Chase Bank NA
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| Fees: | 1%
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| Cusip: | 40433UVL7
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