New Issue: HSBC prices $1.28 million 7.5% airbag autocallable yield notes on Fortinet

By Wendy Van Sickle

Columbus, Ohio, May 8 – HSBC USA Inc. priced $1.28 million of 7.5% airbag autocallable yield notes due May 14, 2018 linked to Fortinet, Inc. shares, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

The notes will be called at par if the shares close at or above their initial level on any quarterly observation date.

The payout at maturity will be par unless the final share price is less than the conversion price, in which case the payout will be a number of Fortinet shares equal to $1,000 divided by the conversion price. The conversion price will be 88% of the initial share price.

HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as agent.

Issuer:	HSBC USA Inc.
Issue:	Airbag autocallable yield notes
Underlying stock:	Fortinent, Inc.
Amount:	$1,282,000
Maturity:	May 14, 2018
Coupon:	7.5%, payable monthly
Price:	Par
Payout at maturity:	If final share price is less than conversion price, number of Fortinet shares equal to $1,000 divided by conversion price; otherwise, par
Call:	Automatically at par if shares close at or above initial level on any quarterly observation date
Initial share price:	$40.08
Conversion price:	$35.27, 88% of initial price
Pricing date:	May 5
Settlement date:	May 10
Underwriter:	HSBC Securities (USA) Inc.
Agent:	UBS Investment Bank
Fees:	1.5%
Cusip:	40435D559

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