New Issue: HSBC prices $1.53 million contingent income barrier notes linked to Russell 2000

By Toni Weeks

San Luis Obispo, Calif., Oct. 22 - HSBC USA Inc. priced $1.53 million of contingent income barrier notes due Oct. 25, 2019 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annualized rate of 6.6% if the index closes above the coupon trigger, 70% of the initial level, on the determination date for that quarter.

If the index return is negative 30% or more, the payout at maturity will be par. Otherwise, investors will be fully exposed to the index's decline from its initial level.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Contingent income barrier notes
Underlying index:	Russell 2000
Amount:	$1,525,000
Maturity:	Oct. 25, 2019
Coupon:	6.6%, payable quarterly if index closes above trigger level on determination date for that quarter
Price:	Par
Payout at maturity:	If index finishes at or above 70% barrier level, par; otherwise, full exposure to losses
Initial level:	1,114.77
Trigger level:	780.34, 70% of initial level
Pricing date:	Oct. 18
Settlement date:	Oct. 25
Agent:	HSBC Securities (USA) Inc.
Fees:	3%
Cusip:	40432XM81

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