New Issue: HSBC prices $561,000 barrier accelerated participation notes on Regional banks

By Wendy Van Sickle

Columbus, Ohio July 3 – HSBC USA Inc. priced $561,000 of 0% barrier accelerated market participation securities due June 29, 2021 linked to the SPDR S&P Regional Banking exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

Investors will receive par plus 200% of any ETF gain up to par plus a cap of 31%.

If the ETF declines but finishes at or above the barrier level of 80% of the initial value, the payout will be par.

Otherwise, investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Barrier Accelerated Market Participation Securities
Underlying ETF:	SPDR S&P Regional Banking exchange-traded fund
Amount:	$561,000
Maturity:	June 29, 2021
Coupon:	0%
Price:	Par of $1,000
Payout at maturity:	If the fund return is positive, par plus 2 times the fund return, subject to a maximum return of 31%; if the fund declines by 20% or less, par; if the fund falls by more than 20%, full exposure to decline
Initial price:	$63.46
Pricing date:	June 22
Settlement date:	June 29
Underwriter:	HSBC Securities (USA) Inc.
Fees:	2.5%
Cusip:	40435FB71

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