New Issue: HSBC sells $220,000 income plus notes with 6.5% potential coupon on stock basket

By Kiku Steinfeld

Chicago, April 11 – HSBC Bank USA, NA sold $220,000 income plus notes due Dec. 22, 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) 3.5% if each basket stock closes at or above its initial price on the annual 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:	$220,000
Maturity:	Dec. 22, 2025
Coupon:	3% plus (a) 3.5% if each basket stock closes at or above its initial price on the valuation date for that year or (b) 0% otherwise; payable annually
Price:	Par
Payout at maturity:	Par plus final coupon
Initial levels:	$11.69 for Ford, $265.83 for McDonald’s, $169.88 for Chevron, $51.36 for Pfizer, $317.33 for Home Depot
Pricing date:	Dec. 19
Settlement date:	Dec. 22
Agent:	HSBC Securities (USA) Inc.
Fees:	1.525%
Cusip:	40441XXJ4

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