New Issue: HSBC sells $425,000 buffered digital notes linked to two ETFs

By Emma Trincal

New York, Oct. 2 – HSBC USA Inc. priced $425,000 of 0% buffered digital notes due Oct. 5, 2023 linked to the SPDR S&P Oil & Gas Exploration & Production exchange-traded fund and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the final share price of the worst-performing fund is greater than or equal to 80% of its initial level, the payout at maturity will be par plus 38%. Otherwise, investors will lose 1% for every 1% that the worst-performing ETF declines beyond 20%.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Buffered digital notes
Underlying ETFs:	SPDR S&P Oil & Gas Exploration & Production ETF and Financial Select Sector SPDR fund
Amount:	$425,000
Maturity:	Oct. 5, 2023
Coupon:	0%
Price:	Par
Payout at maturity:	If worst-performing ETF finishes at or above 80% buffer level, par plus 38%; otherwise, 1% loss for each 1% decline of worst-performing ETF beyond 20%
Initial levels:	$42.07 for the SPDR S&P Oil & Gas Exploration & Production ETF, $24.07 for the Financial Select Sector SPDR fund
Buffer levels:	80% of initial levels
Pricing date:	Sept. 30
Settlement date:	Oct. 5
Underwriter:	HSBC Securities (USA) Inc.
Fees:	0.4%
Cusip:	40438CWZ0

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