New Issue: HSBC prices $1.08 million 5.5% autocallable yield notes on S&P, Russell

By Marisa Wong

Morgantown, W.Va., July 29 – HSBC USA Inc. priced $1.08 million of 5.5% autocallable yield notes due Jan. 31, 2018 linked to the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest will be payable monthly.

Beginning Jan. 26, 2017, the notes will be called at par if each index closes at or above its initial level on any quarterly call observation date.

The payout at maturity will be par unless either index closes below its trigger level, 75% of its initial level, on any day during the life of the notes and the return of the lesser-performing index is negative, in which case investors will lose 1% for every 1% that the least-performing index finishes below its initial level.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable yield notes
Underlying indexes:	S&P 500, and Russell 2000
Amount:	$1,084,000
Maturity:	Jan. 31, 2018
Coupon:	5.5%, payable monthly
Price:	Par
Payout at maturity:	Par unless either index ever closes below trigger level during life of notes and either index finishes below initial level, in which case full exposure to losses of worst performing index
Call:	At par if each index closes at or above initial level on any quarterly observation date beginning Jan. 26, 2017
Initial levels:	2,169.18 for S&P, 1,216.859 for Russell
Trigger levels:	75% of initial levels
Pricing date:	July 26
Settlement date:	July 29
Agent:	HSBC Securities (USA) Inc.
Fees:	0.15%
Cusip:	40433UQE9

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