New Issue: HSBC prices $7 million contingent income barrier notes tied to S&P 500

By Marisa Wong

Madison, Wis., June 19 - HSBC USA Inc. priced $7 million of contingent income barrier notes due June 20, 2028 linked to S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annualized rate of 8.02% if the index closes at or above the 75% coupon barrier level on the determination date for that quarter.

If the index finishes at or above the 50% barrier level, the payout at maturity will be par. Otherwise, investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Contingent income barrier notes
Underlying index:	S&P 500 index
Amount:	$7 million
Maturity:	June 20, 2028
Coupon:	8.02%, payable quarterly if index closes at or above trigger level on determination date for that quarter
Price:	Par
Payout at maturity:	If index finishes at or above 50% barrier level, par; otherwise, full exposure to any losses
Initial level:	1,639.04
Trigger level:	1,229.28, 75% of initial level
Barrier level:	50% of initial level
Pricing date:	June 17
Settlement date:	June 20
Agent:	HSBC Securities (USA) Inc.
Fees:	3.25%
Cusip:	40432XGY1

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