New Issue: HSBC sells $6.82 million dual directional trigger notes on S&P 500

By Sarah Lizee

Olympia, Wash., July 21 – HSBC USA Inc. priced $6.82 million of 0% dual directional trigger securities due Sept. 3, 2021 linked to the S&P 500 index, according to a 424B2 with the Securities and Exchange Commission.

If the index finishes above its initial level, the payout at maturity will be par of $10 plus the index gain, capped at par plus 17%.

If the index finishes flat or falls by up to 10%, the payout will be par plus the absolute value of the index return.

If the index finishes below the 90% trigger level, investors will lose 1% for every 1% that the index declines from its initial level.

HSBC Securities (USA) Inc. is the agent. Morgan Stanley Wealth Management is the dealer.

Issuer:	HSBC USA Inc.
Issue:	Dual directional trigger securities
Underlying index:	S&P 500
Amount:	$6,820,610
Maturity:	Sept. 3, 2021
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If index finishes above initial level, par plus index return, capped at par plus 17%; if index finishes flat or falls by up to trigger level, par plus absolute value of index return; if index finishes below trigger level, 1% loss for every 1% that index declines from initial level
Initial index level:	3,224.73
Trigger level:	2,902.257, 90% of initial level
Pricing date:	July 17
Settlement date:	July 22
Agent:	HSBC Securities (USA) Inc.
Dealer:	Morgan Stanley Wealth Management
Fees:	2.25%
Cusip:	40438J478

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