New Issue: HSBC sells $6 million notes with 2x leverage, cap on Ford, GM stocks

By Wendy Van Sickle

Columbus, Ohio, May 19 – HSBC USA Inc. priced $6 million of 0% notes due May 28, 2021 linked to an equally weighted basket of the common stocks of Ford Motor Co. and General Motors Co., according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par plus 2 times any basket gain, subject to a 300% return cap.

Investors will be fully exposed to any decline in the basket.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Notes
Basket components:	Ford Motor Co. and General Motors Co., equal weights
Amount:	$6 million
Maturity:	May 28, 2021
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 2 times any basket gain up to 300% return cap; full exposure to any decline in basket
Initial levels:	$10.94 for Ford, $33.42 for General Motors
Pricing date:	May 16
Settlement date:	May 23
Agent:	HSBC Securities (USA) Inc.
Fees:	0.6%
Cusip:	40435D524

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