New Issue: HSBC sells $4.61 million of buffered PLUS linked to basket of two funds

By Devika Patel

Knoxville, Tenn., Jan. 4 – HSBC USA Inc. priced $4,604,020 of 0% buffered Performance Leveraged Upside Securities due Jan. 3, 2020 linked to an equally weighted basket of the iShares Russell 2000 exchange-traded fund and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the final basket level is greater than the initial basket level, the payout at maturity will be par plus 105% of the basket return. Investors will receive par if the basket declines by 10% or less and will be exposed to declines beyond 10%.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Buffered Performance Leveraged Upside Securities
Underlying funds:	iShares Russell 2000 and the Financial Select Sector SPDR
Amount:	$4,604,020
Maturity:	Jan. 3, 2020
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If final basket level is greater than initial basket level, par plus 105% of basket return; if final basket level is less than or equal to initial basket level but greater than or equal to trigger level, par; if final basket level is less than trigger level, full exposure to decline from initial basket level
Initial prices:	$114.07 for iShares Russell 2000, $24.07 for Financial Select Sector SPDR
Trigger level:	$102.663 for iShares Russell 2000, $21.663 for Financial Select Sector SPDR, 90% of initial level
Pricing date:	Dec. 30
Settlement date:	Jan. 5
Agent:	HSBC Securities (USA) Inc.
Fees:	2.5%
Cusip:	40434K271

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