New Issue: HSBC sells $105,000 autocallable barrier notes with step-up premium on S&P, Russell

By Sarah Lizee

Olympia, Wash., Aug. 4 – HSBC USA Inc. priced $105,000 of 0% autocallable barrier notes with step-up premium due Aug. 1, 2022 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.

The notes will be called at par plus a call premium if each index closes at or above its initial level on any quarterly observation date after six months. The premium is 14.2% per year.

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

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable barrier notes with step-up premium
Underlying indexes:	S&P 500 and Russell 2000
Amount:	$105,000
Maturity:	Aug. 1, 2022
Coupon:	0%
Price:	Par
Payout at maturity:	Par unless either index has finished below barrier level, in which case investors will lose 1% for each 1% decline of least-performing index from its initial level
Call:	At par plus a call premium if each index closes at or above its initial level on quarterly observation date after six months; premium is 14.2% per year
Initial index levels:	3,218.44 for S&P, 1,469.755 for Russell
Barrier levels:	80% of initial levels
Pricing date:	July 28
Settlement date:	July 31
Agent:	HSBC Securities (USA) Inc.
Fees:	1.75%
Cusip:	40438CNT4

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