New Issue: HSBC sells $176,000 performance allocator notes on U.S., Europe, Asia Pacific baskets

By Marisa Wong

Morgantown, W.Va., Nov. 5 – HSBC USA Inc. priced $176,000 of 0% of performance allocator notes due Oct. 31, 2023 linked to three baskets of regional indexes, according to a 424B2 filed with the Securities and Exchange Commission.

The U.S. basket consists of the S&P 500 index and the Russell 2000 index. The Europe basket consists of the Euro Stoxx 50 index and the FTSE 100 index. The Asia Pacific basket consists of the S&P/ASX 200 index and the Nikkei 225 index.

Each index will have a 50% weight within its respective basket. An allocated return of the baskets will be calculated based on the performance of all three baskets, with the best performing basket to be given a 60% weight, the second best a 30% weight and the worst a 10% weight.

If the allocated return is positive, the payout at maturity will be par plus the gain. If the allocated return is zero or negative but not less than negative 20%, the payout will be par. Otherwise, investors will lose 1% for each 1% that the allocated return is less than negative 20%.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Performance allocator notes
Underlying baskets:	U.S. basket, consisting of S&P 500 index and Russell 2000 index, 50% weights each; Europe basket, consisting of Euro Stoxx 50 index and FTSE 100 index, 50% weights each; Asia Pacific basket, consisting of S&P/ASX 200 index and Nikkei 225 index, 50% weights each
Amount:	$176,000
Maturity:	Oct. 31, 2023
Coupon:	0%
Price:	Par
Payout at maturity:	If allocated return is positive, par plus the gain; if allocated return is zero or negative but not less than negative 20%, par; otherwise, 1% loss for each 1% that the allocated return is less than negative 20%
Allocated return:	Composite return of underlying baskets, based on their performance, with 60% weight for best performing basket, 30% for second best basket, 10% for worst basket
Initial levels:	2,658.69 for S&P, 1,483.821 for Russell, 3,134.89 for Stoxx, 6,939.56 for FTSE, 5,665.16 for S&P/ASX and 21,184.60 for Nikkei
Pricing date:	Oct. 26
Settlement date:	Oct. 31
Agent:	HSBC Securities (USA) Inc.
Fees:	3.75%
Cusip:	40435F3X3

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