New Issue: HSBC prices $50,000 inverse knock-out notes tied to S&P 500 index

By Sarah Lizee

Olympia, Wash., Nov. 21 – HSBC USA Inc. priced $50,000 of 0% inverse knock-out notes due Nov. 4, 2020 linked to the S&P 500 index, according to a 424B2 filed with the Securities and Exchange Commission.

If the final level is less than the initial level but is greater than or equal to the knock-out level, 60.95% of the initial level, the payout at maturity will be par plus the bearish return, which will be (a) the initial level minus the final level divided by (b) the initial level.

If the final level is greater than or equal to the initial level or is less than the knock-out level, investors will receive par.

HSBC Securities (USA) Inc. is the agent. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are placement agents.

Issuer:	HSBC USA Inc.
Issue:	Inverse knock-out notes
Underlying index:	S&P 500
Amount:	$50,000
Maturity:	Nov. 4, 2020
Coupon:	0%
Price:	Par
Payout at maturity:	If the final level is less than the initial level but is greater than or equal to the knock-out level, par plus the bearish return, which will be (a) the initial level minus the final level divided by (b) the initial level; if the final level is greater than or equal to the initial level or is less than the knock-out level, par
Initial level:	2,723.06
Knock-out level:	1,659.71, 60.95% of initial level
Final level:	Average of index closing levels on five trading days ending Oct. 30, 2020
Pricing date:	Nov. 2
Settlement date:	Nov. 7
Agent:	HSBC Securities (USA) Inc. with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents
Fees:	1.5%
Cusip:	40435UAJ3

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