By William Gullotti
Buffalo, N.Y., June 17 – HSBC USA Inc. priced $1 million of phoenix quarterly review notes with a memory coupon feature due June 30, 2023 linked to the common shares of Freeport-McMoRan Inc., according to a 424B2 filing with the Securities and Exchange Commission.
The notes will pay a contingent quarterly coupon at an annualized rate of 13% if the shares close at or above their 59.25% 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 59.25% trigger level, in which case investors will lose 1.6878% per 1% decline below trigger level.
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.
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| Issue: | Phoenix quarterly review notes with memory coupon
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| Underlying stock: | Freeport-McMoRan Inc.
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| Amount: | $1 million
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| Maturity: | June 30, 2023
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| Coupon: | 13% annual rate, payable quarterly if stock closes at or above coupon barrier on observation date for that quarter; coupon payments will include any previously unpaid coupons
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| Price: | Par
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| Payout at maturity: | Par plus all unpaid coupons unless stock finishes below trigger level, in which case 1.6878% loss per 1% decline below trigger level
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| Call: | Automatically at par plus coupon if stock closes at or above initial level on any determination date
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| Initial level: | $37.17
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| Trigger level: | $22.023225; 59.25% of initial level
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| Strike date: | June 13
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| Pricing date: | June 14
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| Settlement date: | June 17
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| Agent: | HSBC Securities (USA) Inc.
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| Placement agents: | JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
|
| Fees: | 1%
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| Cusip: | 40441XBJ8
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