New Issue: HSBC prices $1.64 million contingent income barrier notes on Russell

By Marisa Wong

Morgantown, W.Va., Oct. 25 – HSBC USA Inc. priced $1.64 million of 0% contingent income barrier notes due Oct. 28, 2022 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a quarterly contingent coupon at a rate of 6.25% per year if the index closes at or above the coupon trigger, 70% of the initial level, on the review date for the applicable quarter.

The payout at maturity will be par plus the final contingent interest payment unless the final index level is less than the 70% barrier level, in which case investors will lose 1% for each 1% index decline.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Contingent income barrier notes
Underlying index:	Russell 2000
Amount:	$1,637,000
Maturity:	Oct. 28, 2022
Coupon:	6.25% per year, payable each quarter that index closes at or above coupon trigger on applicable quarterly review date
Price:	Par
Payout at maturity:	Par plus the final contingent interest payment unless the final index level is less than the barrier level, in which case investors will lose 1% for each 1% index decline
Initial level:	1,218.096
Coupon trigger/barrier:	852.6672, 70% of initial level
Pricing date:	Oct. 21
Settlement date:	Oct. 28
Agent:	HSBC Securities (USA) Inc.
Fees:	3.25%
Cusip:	40433UXE1

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