New Issue: HSBC sells $5.75 million autocallable buffer notes on S&P, Russell

By Sarah Lizee

Olympia, Wash., March 5 – HSBC USA Inc. priced $5.75 million of 0% autocallable buffer notes due Sept. 2, 2021 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.

Beginning Aug. 28, the notes will be called at par plus a call premium if each index closes at or above its initial level on any semiannual call date. The premium is 9.5% per year.

The payout will be par unless any index has finished below its 80% buffer level, in which case investors will lose 1.25% for each 1% decline of the least-performing index beyond 20%.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable buffer notes
Underlying indexes:	S&P 500 index and Russell 2000 index
Amount:	$5,745,000
Maturity:	Sept. 2, 2021
Coupon:	0%
Price:	Par
Payout at maturity:	Par unless either index has finished below buffer level, in which case investors will lose 1.25% for each 1% decline of least-performing index beyond buffer
Call:	Beginning Aug. 28, at par plus a call premium of 9.5% per year if each index closes at or above its initial level on any semiannual call date
Initial index levels:	3,116.39 for S&P, 1,552.761 for Russell
Buffer levels:	2,493.112 for S&P, 1,242.2088 for Russell; 80% of initial levels
Pricing date:	Feb. 26
Settlement date:	March 2
Agent:	HSBC Securities (USA) Inc.
Fees:	0.05%
Cusip:	40435U6W9

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