New Issue: HSBC prices $11.39 million contingent absolute return notes on S&P 500

By Marisa Wong

Madison, Wis., June 26 – HSBC USA Inc. priced $11.39 million of 0% contingent absolute return performance securities due Dec. 31, 2019 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index finishes at or above the initial level, the payout at maturity will be par plus the gain.

If the index finishes at or above the 65% trigger level, the payout will be par plus the absolute value of the return.

Otherwise, investors will be fully exposed to any losses.

UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.

Issuer:	HSBC USA Inc.
Issue:	Contingent absolute return performance securities
Underlying index:	S&P 500
Amount:	$11,385,000
Maturity:	Dec. 31, 2019
Coupon:	0%
Price:	Par
Payout at maturity:	If index finishes at or above initial level, par plus gain; if index finishes at or above trigger level, par plus absolute value of return; otherwise, investors will be fully exposed to any losses
Initial level:	1,949.98
Trigger level:	1,267.49, 65% of initial level
Pricing date:	June 24
Settlement date:	June 27
Agents:	UBS Financial Services Inc. and HSBC Securities (USA) Inc.
Fees:	3.5%
Cusip:	40434C352

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