New Issue: HSBC prices $5.28 million trigger jump notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., April 2 – HSBC USA Inc. priced $5.28 million of 0% trigger jump securities due April 6, 2021 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index return is positive, the payout at maturity will be par of $10 plus the greater of the index return and 40%. Investors will receive par if the index declines by 40% or less and will be exposed to losses from the initial level if the index declines by more than 40%.

HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Smith Barney.

Issuer:	HSBC USA Inc.
Issue:	Trigger jump securities
Underlying index:	S&P 500
Amount:	$5,277,340
Maturity:	April 6, 2021
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If index return is positive, par plus greater of index return and 40%; par if index declines by 40% or less; exposure to losses from initial level if index declines by more than 40%
Initial index level:	2,067.89
Downside threshold:	1,240.73, 60% of initial index level
Pricing date:	March 31
Settlement date:	April 6
Agent:	HSBC Securities (USA) Inc.
Distribution:	Morgan Stanley Smith Barney
Fees:	3.5%
Cusip:	40434F181

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