New Issue: HSBC prices $2.12 million of callable notes with contingent return linked to two indexes

By Wendy Van Sickle

Columbus, Ohio, Sept. 27 – HSBC USA Inc. priced $2.12 million of callable notes with contingent return due May 4, 2021 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 pay a contingent semiannual coupon at an annual rate of 6% if each index closes at or above the 60% barrier level on the observation date that period.

The notes will be callable semiannually beginning March 30, 2017.

The payout at maturity will be par plus the final contingent payment unless either index finishes below its 60% barrier level, in which case investors will be fully exposed to any losses of the worse performing component.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Callable notes with contingent return
Underlying indexes:	S&P 500 and Russell 2000
Amount:	$2,122,000
Maturity:	May 4, 2021
Coupon:	6%, payable semiannually if each index closes at or above its 60% barrier level on the observation date for that period
Price:	Par
Payout at maturity:	Par plus contingent coupon unless either index finishes below its barrier level, in which case full exposure to any losses of worse performing index
Call option:	At par on any semiannual call date beginning March 30, 2017
Initial levels:	2,164.69 for S&P and 1,254.623 for Russell
Barrier levels:	1,298.814 for S&P and 752.7738 for Russell; 60% of initial levels
Pricing date:	Sept. 23
Settlement date:	Sept. 30
Agent:	HSBC Securities (USA) Inc.
Fees:	2.15%
Cusip:	40433UDM5

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