New Issue: HSBC prices $1.58 million digital dual directional barrier notes tied to Russell, S&P

By Angela McDaniels

Tacoma, Wash., July 30 – HSBC USA Inc. priced $1.58 million of 0% digital dual directional barrier securities due July 31, 2024 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.

If each index finishes at or above its barrier level, 70% of its initial level, the payout at maturity will be par plus the greater of the lesser-performing index’s return and 21%. Otherwise, investors will lose 1% for every 1% that the lesser-performing index’s final level is less than its initial level.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Digital dual directional barrier securities
Underlying indexes:	S&P 500 and Russell 2000
Amount:	$1.58 million
Maturity:	July 31, 2024
Coupon:	0%
Price:	Par
Payout at maturity:	If each index finishes at or above barrier level, par plus greater of lesser-performing index’s return and 21%; otherwise, 1% loss for every 1% that lesser-performing index’s final level is less than initial level
Initial level:	3,025.86 for S&P 500 and 1,578.967 for Russell 2000
Barrier levels:	2,118.102 for S&P 500 and 1,105.2769 for Russell 2000, or 70% of initial levels
Pricing date:	July 26
Settlement date:	July 31
Underwriter:	HSBC Securities (USA) Inc.
Fees:	3.75%
Cusip:	40435URG1

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