New Issue: HSBC prices $182,000 contingent return autocallables linked to S&P, Russell

By Angela McDaniels

Tacoma, Wash., Oct. 1 – HSBC USA Inc. priced $182,000 of 0% autocallable notes with contingent return due Sept. 30, 2019 linked to 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 automatically called at par plus 9.5% per year if each index closes at or above its initial level on Sept. 26, 2016, Sept. 26, 2017, Sept. 25, 2018 or Sept. 25, 2019.

If the notes are not called and the final return of the lesser-performing index is less than zero but greater than or equal to negative 30%, the payout at maturity will be par plus 10%. If the final return of the lesser-performing index is less than negative 30%, investors will be fully exposed to that index’s decline.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable notes with contingent return
Underlying indexes:	S&P 500 and Russell 2000
Amount:	$182,000
Maturity:	Sept. 30, 2019
Coupon:	0%
Price:	Par
Payout at maturity:	If final return of lesser-performing index is less than zero but greater than or equal to negative 30%, par plus 10%; if final return of lesser-performing index is less than negative 30%, full exposure to that index’s decline
Call:	Automatically at par plus 9.5% per year if each index closes at or above its initial level on Sept. 26, 2016, Sept. 26, 2017, Sept. 25, 2018 or Sept. 25, 2019
Initial levels:	1,931.34 for S&P 500 and 1,122.789 for Russell 2000
Pricing date:	Sept. 25
Settlement date:	Sept. 30
Agent:	HSBC Securities (USA) Inc.
Fees:	2.625%
Cusip:	40433B6M5

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