New Issue: HSBC sells $1.2 million autocallable barrier notes with step-up premium on Russell

By Kiku Steinfeld

Chicago, July 18 – HSBC USA Inc. priced $1.2 million of 0% autocallable barrier notes with step-up premium and digital upside return due Dec. 31, 2026 linked to 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 the index closes at or above its initial level on any annual call observation date. The call premium is 9.3% per year.

If the notes are not called and the index finishes at or above its initial level, the payout will be par plus the greater of the index return and 25%. If the index falls by up to 25%, the payout will be par. Otherwise, investors will be fully exposed to the decline of the index.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable barrier notes with step-up premium and digital upside return
Underlying index:	Russell 2000 index
Amount:	$1,201,000
Maturity:	Dec. 31, 2026
Coupon:	0%
Price:	Par
Payout at maturity:	If index finishes at or above its initial level, par plus greater of index return and 25%; if index falls but not below 75% barrier level, par; otherwise, full exposure to losses
Call:	At par plus a call premium of 9.3% per year if index closes at or above its initial level on any annual call date
Initial index level:	2,246.505
Barrier level:	75% of initial level
Pricing date:	Dec. 28, 2021
Settlement date:	Dec. 31, 2021
Agent:	HSBC Securities (USA) Inc.
Fees:	2.35%
Cusip:	40439JVU6

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