HSBC plans phoenix quarterly review notes linked to SPDR S&P Oil & Gas

By Susanna Moon

Chicago, Jan. 26 – HSBC USA Inc. plans to price phoenix quarterly review notes due Feb. 14, 2018 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund, according to an FWP filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon of 12.35% annualized if the fund closes at or above the 75% coupon barrier on an observation date for that quarter.

The notes will be called at par plus the contingent coupon if the fund closes at or above the initial price on any quarterly observation date.

The payout at maturity will be par plus the contingent coupon unless the fund finishes 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 dealers.

The notes will price on Jan. 27 and settle on Feb. 1.

The Cusip number is 40433UM45.

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