New Issue: HSBC prices $600,000 callable contingent interest notes on Micron

By Kiku Steinfeld

Chicago, Aug. 19 – HSBC USA Inc. priced $600,000 of callable contingent interest notes due Aug. 3, 2023 linked to Micron Technology, Inc. common shares, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 11.15% if the stock closes at or above its 70% coupon barrier on the review date for that quarter.

The notes may be called at par on any of the quarterly review dates other than the final review date.

The payout at maturity will be par unless the stock finishes below 70% of its initial value, in which case investors will receive a number of shares equal to $1,000 divided by the initial share price or, at the issuer’s option, the cash equivalent.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Callable contingent interest notes
Underlying stock:	Micron Technology, Inc.
Amount:	$600,000
Maturity:	Aug. 3, 2023
Coupon:	11.15% per year, payable quarterly if the stock closes at or above its coupon barrier on the review date for that quarter
Price:	Par
Payout at maturity:	Par unless stock finishes below trigger level, in which case investors will receive number of shares equal to $1,000 divided by initial price or, at issuer’s option, cash equivalent
Call option:	At par plus contingent coupon on any quarterly review date other than final review date
Initial share price:	$77.58
Trigger price:	$54.306, 70% of initial share price
Pricing date:	July 30
Settlement date:	Aug. 5
Agent:	HSBC Securities (USA) Inc.
Fees:	1.75%
Cusip:	40428HQR6

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