New Issue: HSBC prices $7.07 million dual directional barrier notes tied to S&P 500, Russell 2000

By Wendy Van Sickle

Columbus, Ohio, March 28 – HSBC USA Inc. priced $7.07 million of 0% dual directional barrier notes due April 1, 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 payout at maturity will be par plus triple any gain by the lesser performing index, up to a maximum return of 38%.

Investors will receive par plus the absolute value of the lesser performing index’s return if the worse index falls by up to 30%. If either of the indexes finishes below 70% of its initial level, investors will be exposed to the decline of the lesser performing index.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Dual directional barrier notes
Underlying indexes:	S&P 500, Russell 2000
Amount:	$7,071,000
Maturity:	April 1, 2019
Coupon:	0%
Price:	Par
Payout at maturity:	If each index gains, par plus triple the return of worse performing index, up to maximum return of 38%; if either index falls but by no more than 30%, par plus absolute value of return of worse performing index; otherwise, full exposure to any losses of worse performing index
Initial levels:	2,035.94 for S&P, 1,079.537 for Russell
Pricing date:	March 24
Settlement date:	March 30
Agent:	HSBC Securities (USA) Inc.
Fees:	0.5%
Cusip:	40433ULA2

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