By Susanna Moon
Chicago, March 24 – HSBC USA Inc. priced $3.54 million of phoenix quarterly review notes with a memory coupon feature due April 4, 2018 linked to Anadarko Petroleum Corp. shares, according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon of 13.45% annualized if Anadarko shares close at or above the 75% coupon barrier on an observation date for that quarter.
If a coupon payment is missed because the stock closes below the barrier, it will be paid on the next coupon payment date on which the stock closes at or above the barrier.
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 Anadarko 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.
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| Issue: | Phoenix quarterly review notes with memory coupon
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| Underlying stock: | Anadarko Petroleum Corp. (Symbol: APC)
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| Amount: | $3,543,000
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| Maturity: | April 4, 2018
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| Coupon: | 13.45% per year, payable quarterly if Anadarko shares close at or above 75% coupon barrier on observation date for that quarter; if a coupon payment is missed because the stock closes below the barrier, it will be paid on the next coupon payment date on which the stock closes at or above barrier
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| Price: | Par
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| Payout at maturity: | Par plus the contingent coupon unless Anadarko shares finish below trigger level, in which case investors will be fully exposed to any losses
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| Call: | At par plus the contingent coupon if shares close at or above the initial price on any quarterly observation date
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| Initial price: | $63.25
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| Trigger level: | $47.4375, 75% of initial price
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| Pricing date: | March 17
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| Settlement date: | March 22
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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
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| Fees: | 1%
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| Cusip: | 40433UY67
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