New Issue: HSBC prices $3.85 million callable notes with contingent return linked to S&P, Russell

By Wendy Van Sickle

Columbus, Ohio, Nov. 2 – HSBC USA Inc. priced $3.85 million of callable notes with contingent return due Oct. 4, 2027 linked to the lesser performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Each month, the notes will pay a contingent coupon at an annual rate of 5% if each index closes at or above its barrier level, 60% of its initial level, on the observation date for that month.

Beginning Oct. 29, 2018, the notes are callable at par monthly.

The payout at maturity will be par plus the final contingent coupon unless either index finishes below its barrier level, in which case investors will be fully exposed to the decline of the worse-performing index.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Callable notes with contingent return
Indexes:	S&P 500 and Russell 2000
Amount:	$3,854,000.00
Maturity:	Oct. 4, 2027
Coupon:	5% per year, payable monthly if each index closes at or above barrier level on observation date for that month
Price:	Par
Payout at maturity:	Par plus contingent coupon unless either index finishes below barrier level, in which case full exposure to decline of worse-performing index
Call option:	Beginning Oct. 29, 2018 at par monthly
Initial index levels:	2,560.40 for S&P 500 and 1,497.459 for Russell 2000
Barrier levels:	1,536.24 for S&P 500 and 898.475 for Russell 2000; 60% of initial levels
Pricing date:	Oct. 26
Settlement date:	Oct. 31
Agent:	HSBC Securities (USA) Inc.
Fees:	3.25%
Cusip:	40435FHX8

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