New Issue: HSBC sells $2 million contingent income barrier notes on MSCI EM fund

By Tali Rackner

Norfolk, Va., June 9 – HSBC USA, Inc. priced $2 million of contingent income barrier notes due June 2, 2022 linked to the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly payment at an annual rate of 6.25% if the fund closes at or above the 70% downside threshold level on a determination date for that quarter.

The payout at maturity will be par plus the contingent unless the fund finishes below the 70% trigger level, in which case investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Contingent income barrier notes
Underlying ETF:	iShares MSCI Emerging Markets ETF
Amount:	$2 million
Maturity:	June 2, 2022
Coupon:	6.25% per annum, payable quarterly if ETF closes at or above coupon trigger on coupon determination date for that quarter
Price:	Par of $1,000
Payout at maturity:	Par if ETF return is greater than or equal to negative 30%; otherwise, full exposure to losses, equal to the physical delivery amount in shares
Initial share price:	$33.09
Coupon trigger/barrier price:	$23.163, 70% of initial share price
Pricing date:	May 27
Settlement date:	June 2
Underwriter:	HSBC Securities (USA) Inc.
Fees:	2%
Cusip:	40433UPJ9

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