New Issue: HSBC prices $29.38 million leveraged notes linked to three indexes

By Angela McDaniels

Tacoma, Wash., Aug. 29 – HSBC USA Inc. priced $29.38 million of 0% Leveraged Index Return Notes due Aug. 30, 2019 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The issuer priced $29.44 million principal amount of notes. Of those, $16.92 million principal amount priced at par of $10.00 and $12.53 million principal amount priced at $9.95 each. The proceeds totaled $29.38 million.

The basket is comprised of the S&P 500 index with a 33.34% weight, the Euro Stoxx 50 index with a 33.33% weight and the MSCI Emerging Markets index with a 33.33% weight.

If the basket return is positive, the payout at maturity will be par plus 162.5% of the basket return. If the basket return is negative, investors will be exposed to the basket’s decline.

BofA Merrill Lynch is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Leveraged Index Return Notes
Underlying indexes:	S&P 500 (33.34% weight), Euro Stoxx 50 (33.33% weight) and MSCI Emerging Markets (33.33% weight)
Principal amount:	$29,444,860
Proceeds:	$29,382,234.40
Maturity:	Aug. 30, 2019
Coupon:	0%
Price:	Par of $10 for $16,919,740 principal amount and $9.95 for $12,525,120 principal amount
Payout at maturity:	If basket return is positive, par plus 162.5% of basket return; if basket return is negative, exposure to basket’s decline
Initial index levels:	2,172.47 for S&P 500; 898.10 for MSCI Emerging Markets and 2,987.69 for Euro Stoxx 50
Pricing date:	Aug. 25
Settlement date:	Sept. 1
Underwriter:	BofA Merrill Lynch
Fees:	2.25%
Cusip:	40434V335

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