By Susanna Moon
Chicago, July 19 – HSBC USA Inc. priced $2.21 million of phoenix quarterly review notes with a memory coupon feature due July 31, 2019 linked to Alphabet Inc. stock, according to an FWP filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 10% if the shares close at or above its 81% coupon barrier on the 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 that 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 the shares finish below the 81% trigger level, in which case investors will be fully exposed to any losses.
HSBC Securities (USA) Inc. is the underwriter, and JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.
| Issuer: | HSBC USA Inc.
|
| Issue: | Phoenix quarterly review notes
|
| Underlying stock: | Alphabet Inc. (Symbol: GOOG)
|
| Amount: | $2,212,000
|
| Maturity: | July 31, 2019
|
| Coupon: | 10%, payable quarterly if stock closes at or above 81% coupon barrier on observation date for that quarter; If coupon payment is missed, it will be paid on next coupon payment date that stock closes at or above barrier
|
| Price: | Par
|
| Payout at maturity: | Par unless stock finishes below 81% trigger, in which case 1% loss per 1% decline
|
| Call: | At par if stock closes at or above initial level on any determination date
|
| Initial level: | $1,188.82
|
| Trigger level: | $962.94, 81% of initial level
|
| Pricing date: | July 13
|
| Settlement date: | July 18
|
| Agent: | HSBC Securities (USA) Inc.
|
| Fees: | 1%
|
| Cusip: | 40435FQ34
|
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