New Issue: HSBC prices $2.52 million contingent income securities on S&P

By Wendy Van Sickle

Columbus, Ohio, March 7 – HSBC USA Inc. priced $2.52 million of contingent income securities due March 3, 2027 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a quarterly contingent coupon at an annual rate of 7.25% if the index closes at or above the 75% coupon barrier level on the review date for that quarter.

The payout at maturity will be par plus the contingent interest unless the index finishes below the 60% downside threshold level, in which case investors will lose 1% for each 1% index decline.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Contingent income securities
Underlying index:	S&P 500
Amount:	$2.52 million
Maturity:	March 3, 2027
Coupon:	7.25% per year, payable each quarter that index closes at or above coupon barrier on review date for that quarter
Price:	Par
Payout at maturity:	Par plus contingent interest unless index falls below downside threshold, in which case full exposure to any losses
Initial level:	2,363.64
Coupon barrier:	1,772.73, 75% of initial level
Downside threshold:	1,418.184, 60% of initial level
Pricing date:	Feb. 28
Settlement date:	March 3
Agent:	HSBC Securities (USA) Inc.
Fees:	3.5%
Cusip:	40433US31

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