New Issue: HSBC prices $3.5 million buffered return enhanced notes on index basket

By Sarah Lizee

Olympia, Wash., June 6 – HSBC USA Inc. priced $3.5 million of 0% buffered return enhanced notes due June 7, 2024 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the Euro Stoxx 50 index (39% weight), the Topix index (26% weight), the FTSE 100 index (15% weight), the S&P/ASX 200 index (11% weight) and the Swiss Market index (9% weight).

If the basket return is greater than zero, the payout at maturity will be par plus 195% of the basket return. Investors will receive par if the basket declines by 41% or less and will lose 1.6949% for every 1% that it might decline beyond 41%.

HSBC Securities (USA) Inc. is the underwriter. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are placement agents.

Issuer:	HSBC USA Inc.
Issue:	Buffered return enhanced notes
Underlying indexes:	Euro Stoxx 50 index (39% weight), Topix index (26% weight), FTSE 100 index (15% weight), S&P/ASX 200 index (11% weight) and Swiss Market index (9% weight)
Amount:	$3.5 million
Maturity:	June 7, 2024
Coupon:	0%
Price:	Par
Payout at maturity:	If the basket return is greater than zero, par plus 195% of the basket return; par if the basket declines by 41% or less; 1.6949% loss for every 1% decline beyond 41%
Initial index levels:	3,333.49 for Stoxx, 1,499.09 for Topix, 7,214.29 for FTSE, 6,332.363 for S&P/ASX, and 9,597.71 for Swiss
Pricing date:	June 4
Settlement date:	June 7
Underwriter:	HSBC Securities (USA) Inc.
Agents:	JPMorgan Chase Bank NA and J.P. Morgan Securities LLC
Fees:	3%
Cusip:	40435UQL1

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