New Issue: HSBC prices $145,000 autocallable growth barrier notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., Jan. 29 – HSBC USA Inc. priced $145,000 of 0% autocallable growth barrier notes due Jan. 29, 2020 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be automatically called at 112% of par if the index’s closing level on Jan. 25, 2017 is greater than 110% of the initial index level.

If the notes are not called and the index return is greater than zero, the payout at maturity will be par plus 120% of the index return. If the index return is less than or equal to zero but greater than or equal to negative 25%, the payout will be par. If the return is less than negative 25%, investors will suffer a loss proportionate to the index’s decline.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Autocallable growth barrier notes
Underlying index:	S&P 500
Amount:	$145,000
Maturity:	Jan. 29, 2020
Coupon:	0%
Price:	Par
Payout at maturity:	If index return is greater than zero, par plus 120% of index return; if index return is less than or equal to zero but greater than or equal to negative 25%, par; if return is less than negative 25%, full exposure to index’s decline
Call:	Automatically at 112% of par if index’s closing level on Jan. 25, 2017 is greater than 2,093.99 (110% of initial index level)
Initial level:	1,903.63
Pricing date:	Jan. 26
Settlement date:	Jan. 29
Underwriter:	HSBC Securities (USA) Inc.
Fees:	2.75%
Cusip:	40433UFW1

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