New Issue: HSBC sells $290,000 income plus notes with 7% potential coupon on stock basket

By Kiku Steinfeld

Chicago, March 20 – HSBC Bank USA, NA sold $290,000 income plus notes due Dec. 5, 2025 linked to the stocks of Ford Motor Co., McDonald’s Corp., Chevron Corp., Pfizer Inc. and Home Depot, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable annually. The interest rate will be 3% plus (a) the performance-based annual coupon, 6%, if each basket stock closes at or above its initial share price on the valuation date for that year or (b) 0% otherwise.

The payout at maturity will be par plus the last coupon payment.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Income plus notes
Underlying stocks:	Ford Motor Co., McDonald’s Corp., Chevron Corp., Pfizer Inc., Home Depot, Inc.
Amount:	$290,000
Maturity:	Dec. 5, 2025
Coupon:	Variable, payable annually; if each basket stock closes at or above its initial level on the corresponding review date, the coupon will be 6%; if any stock closes below its initial level, the coupon will be 3%
Price:	Par
Payout at maturity:	Par plus relevant coupon
Initial levels:	$13.90 for Ford, $272.79 for McDonald’s, $183.31 for Chevron, $50.13 for Pfizer, $323.99 for Home Depot
Pricing date:	Nov. 30, 2022
Settlement date:	Dec. 5, 2022
Agent:	HSBC Securities (USA) Inc.
Fees:	0.5%
Cusip:	40441XTN0

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