New Issue: HSBC prices $2.52 million contingent income barrier notes on Russell

By Marisa Wong

Madison, Wis., Dec. 26 - HSBC USA Inc. priced $2.52 million of contingent income barrier notes due Dec. 30, 2019 linked to the Russell 2000 index, according to a 424B2 with the Securities and Exchange Commission.

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

If the index finishes at or above the 70% barrier level, the payout at maturity will be par plus the contingent payment.

Otherwise, investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Contingent income barrier notes
Underlying index:	Russell 2000
Amount:	$2,524,000
Maturity:	Dec. 30, 2019
Coupon:	6.6%, payable quarterly if index closes above barrier 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:	1,146.47
Barrier level:	802.53, 70% of initial level
Pricing date:	Dec. 20
Settlement date:	Dec. 30
Agent:	HSBC Securities (USA) Inc.
Fees:	3%
Cusip:	40432XPR6

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