New Issue: HSBC sells $2.28 million callable notes with contingent return on Amazon

By William Gullotti

Buffalo, N.Y., May 18 – HSBC USA Inc. priced $2.28 million of callable notes with contingent return due May 16, 2024 linked to the performance Amazon.com, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 12.45% if the stock closes at or above the 60.75% coupon trigger level on the related observation date.

HSBC may call the notes on any quarterly coupon payment date after six months.

The payout at maturity will be par plus the final contingent coupon unless the stock finishes below its 60.75% barrier level, in which case investors will receive a number of shares equal to $5,000 divided by the stock’s initial share price.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Callable notes with contingent return
Underlying stock:	Amazon.com, Inc.
Amount:	$2.28 million
Maturity:	May 16, 2024
Coupon:	12.45%, payable quarterly if stock closes at or above coupon trigger on related observation date
Price:	Par of $5,000
Payout at maturity:	Par plus contingent coupon unless the stock finishes below barrier value, in which case investors will receive number of shares equal to $5,000 divided by the stock’s initial share price
Call option:	At par on any quarterly coupon payment date after six months
Initial level:	$2,261.10
Coupon trigger:	$1,373.61825; 60.75% of initial value
Barrier value:	$1,373.61825; 60.75% of initial value
Pricing date:	May 13
Settlement date:	May 18
Agent:	HSBC Securities (USA) Inc.
Fees:	1.75%
Cusip:	40428HTE2

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