New Issue: HSBC prices $212,000 autocallable growth barrier notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., June 10 – HSBC USA Inc. priced $212,000 of 0% autocallable growth barrier notes due May 31, 2019 linked to the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be automatically called at 114% of par if the fund’s closing share price on May 26, 2017 is greater than 110% of the initial share price.

If the notes are not called and the fund return is greater than zero, the payout at maturity will be par plus 140% of the fund return. If the fund 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 fund’s decline.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Autocallable growth barrier notes
Underlying fund:	Energy Select Sector SPDR fund
Amount:	$212,000
Maturity:	May 31, 2019
Coupon:	0%
Price:	Par
Payout at maturity:	If notes are not called and fund return is greater than zero, par plus 140% of fund return; if fund return is less than or equal to zero but greater than or equal to negative 25%, par; if return is less than negative 25%, investors suffer loss proportionate to fund’s decline
Call:	Automatically at 114% of par if fund’s closing share price on May 26, 2017 is greater than 110% of initial share price
Initial share price:	$67.30
Pricing date:	May 25
Settlement date:	May 31
Underwriter:	HSBC Securities (USA) Inc.
Fees:	0.25%
Cusip:	40433UMN3

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