New Issue: HSBC prices $1 million autocallable yield notes linked to Russell, S&P

By Angela McDaniels

Tacoma, Wash., Nov. 29 – HSBC USA Inc. priced $1 million of 5.75% autocallable yield notes due May 31, 2018 linked to the lesser performing of the Russell 2000 index and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable monthly.

Beginning in May, 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 finishes below its initial level and either index closes below its trigger level, 75% of its initial level, during the life of the notes, in which case investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Autocallable yield notes
Underlying indexes:	Russell 2000 and S&P 500
Amount:	$1,004,000
Maturity:	May 31, 2018
Coupon:	5.75%, payable monthly
Price:	Par
Payout at maturity:	Par unless either index finishes below initial level and either index closes below trigger level during life of notes, in which case 1% loss for every 1% that lesser-performing index declines from initial level
Call:	Beginning in May, notes will be called at par if each index closes at or above initial level on any quarterly call observation date
Initial index levels:	2,198.18 for S&P 500 and 1,322.234 for Russell 2000
Trigger levels:	75% of initial levels
Pricing date:	Nov. 21
Settlement date:	Nov. 25
Agent:	HSBC Securities (USA) Inc.
Fees:	1.5%
Cusip:	40433UYH3

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