New Issue: HSBC prices $2.76 million 5.4% fixed-rate autocalls tied to Russell, S&P 500

By Wendy Van Sickle

Columbus, Ohio, June 7 – HSBC USA Inc. priced $2.76 million of 5.4% autocallable fixed-rate notes due Dec. 2, 2019 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 semiannually.

The notes will be called at par plus any unpaid coupon if each index closes at or above its initial level on any semiannual review date.

The payout at maturity will be par unless either index finishes below its 80% buffer level, in which case investors will lose 1.25% for each 1% decline of the worse performing index beyond 20%.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Autocallable fixed-rate notes
Underlying assets:	Russell 2000 index and S&P 500 index
Amount:	$2,762,000
Maturity:	Dec. 2, 2019
Coupon:	5.4% annualized, payable semiannually
Price:	Par
Payout at maturity:	Par unless either asset falls below buffer, in which case 1.25% loss for each 1% decline of worse performing index beyond buffer
Call:	At par plus any unpaid coupon if each index closes at or above its initial level on any semiannual review date
Initial levels:	1,626.928 for Russell and 2,721.33 for S&P
Buffer levels:	80% of initial levels
Pricing date:	May 25
Settlement date:	May 31
Agent:	HSBC Securities (USA) Inc.
Fees:	0.5%
Cusip:	40435FG50

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