New Issue: HSBC sells $300,000 buffered return enhanced notes on Health Care Select Sector SPDR

By Wendy Van Sickle

Columbus, Ohio, Nov. 13 – HSBC USA Inc. priced $2.69 million of 0% buffered return enhanced notes due Feb. 5, 2020 linked to the Health Care Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the fund closes at or above its initial value, the payout at maturity will be par plus 1.5 times any gain with the payout capped at par plus 13.35%.

If the fund declines by up to 10%, the payout will be par. Investors will lose 1.1111% for each 1% loss beyond 10%.

The placement agent is J.P. Morgan Securities LLC.

Issuer:	HSBC USA Inc.
Issue:	Buffered return enhanced notes
Underlying fund:	Health Care Select Sector SPDR fund
Amount:	$300,000
Maturity:	Feb. 5, 2020
Coupon:	0%
Price:	Par of $1,000
Payout at maturity:	Par plus 1.5 times return of fund, capped at par plus 13.35%; par if fund declines by up to 10%; 1.1111% loss for each 1% loss beyond 10%
Initial value:	$89.26
Pricing date:	Nov. 2
Settlement date:	Nov. 7
Placement agent:	J.P. Morgan Securities LLC
Fees:	1.12%
Cusip:	40435UAG9

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