New Issue: HSBC sells $1.16 million autocallable yield notes tied to S&P, Russell

By Devika Patel

Knoxville, Tenn., Dec. 31 – HSBC USA Inc. priced $1.16 million of autocallable yield notes due March 30, 2021 linked to the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The interest rate will be 6% per year, and interest will be payable monthly.

Beginning June 25, 2020, the notes will be called at par if each index closes at or above its initial level on any monthly call observation date.

The payout at maturity will be par unless either index closes below its trigger level, 75% of its initial level, on any day during the life of the notes and the return of the least-performing index is negative, in which case investors will lose 1% for every 1% that the least-performing index finishes below its initial level.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable yield notes
Underlying indexes:	S&P 500 and Russell 2000
Amount:	$1,157,000
Maturity:	March 30, 2021
Coupon:	6%, payable monthly
Price:	Par
Payout at maturity:	Par unless either index falls below trigger level and return of least-performing index is negative, in which case full exposure to loss of worse performing index
Call:	At par if each index closes at or above the initial level on any monthly observation date beginning June 25, 2020
Initial levels:	3,221.22 for S&P 500, 1,671.902 for Russell
Trigger levels:	2,254.854 for S&P 500, 1,170.3314 for Russell, 70% of initial levels
Pricing date:	Dec. 20
Settlement date:	Dec. 30
Agent:	HSBC Securities (USA) Inc.
Fees:	None
Cusip:	40435US21

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