New Issue: HSBC sells $4.95 million callable notes with contingent return on S&P, Russell

By Sarah Lizee

Olympia, Wash., Jan. 23 – HSBC USA Inc. priced $4.95 million of callable notes with contingent return due Jan. 14, 2022 linked to the lesser performing of 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 coupon each six months at an annual rate of 7.75% if each index closes at or above its barrier level, 70% of its initial level, on the observation date for that period.

The notes are callable at par semiannually.

The payout at maturity will be par plus the final contingent coupon unless either index finishes below its barrier level, in which case investors will be fully exposed to the decline of the worse-performing index.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Callable notes with contingent return
Indexes:	S&P 500 and Russell 2000
Amount:	$4,954,000
Maturity:	Jan. 14, 2022
Coupon:	7.75% per year, payable each six months if each index closes at or above barrier level on observation date for that period
Price:	Par
Payout at maturity:	Par plus contingent coupon unless either index finishes below barrier level, in which case full exposure to decline of worse-performing index
Call option:	At par semiannually
Initial index levels:	2,670.71 for S&P 500 and 1,482.501 for Russell 2000
Barrier levels:	1,869.497 for S&P 500 and 1,037.7507 for Russell 2000; 70% of initial levels
Pricing date:	Jan. 18
Settlement date:	Jan. 25
Agent:	HSBC Securities (USA) Inc.
Fees:	2%
Cusip:	40435UCU6

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