By Marisa Wong
Morgantown, W.Va., Oct. 25 – HSBC USA Inc. priced $2.47 million of phoenix quarterly review notes due Nov. 8, 2017 linked to Bank of America Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annual rate of 11.5% if Bank of America shares close at or above the 75% coupon barrier on a quarterly observation date.
The notes will be called at par plus the contingent coupon if the shares close at or above the initial price on any quarterly observation date.
The payout at maturity will be par plus the contingent coupon unless Bank of America shares finish below the 75% trigger level, in which case 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 placement agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Phoenix quarterly review notes
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| Underlying stock: | Bank of America Corp. (Symbol: BAC)
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| Amount: | $2,465,000
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| Maturity: | Nov. 8, 2017
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| Coupon: | 11.5% per year, payable each quarter that Bank of America shares close at or above coupon barrier on applicable quarterly observation date
|
| Price: | Par of $1,000
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| Payout at maturity: | Par plus the contingent coupon unless Bank of America shares finish below trigger level, in which case investors will be fully exposed to any losses
|
| Call: | At par plus the contingent coupon if the shares close at or above the initial price on any quarterly observation date
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| Initial price: | $16.67
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| Coupon barrier/trigger level: | $12.50, 75% of initial price
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| Pricing date: | Oct. 21
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| Settlement date: | Oct. 26
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| Underwriter: | HSBC Securities (USA) Inc.
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| Placement agents: | J.P. Morgan Securities LLC and JPMorgan Chase Bank NA
|
| Fees: | 1%
|
| Cusip: | 40433UYA8
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