New Issue: HSBC prices $1.93 million barrier enhanced participation notes linked to Dow, Russell

By Wendy Van Sickle

Columbus, Ohio, Jan. 31 – HSBC USA Inc. priced $1.93 million of 0% barrier enhanced participation notes due Jan. 31, 2025 linked to the lesser performing of the Dow Jones industrial average and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the return of each index is positive, the payout at maturity will be par plus 113.3% of the lesser-performing index’s return. If the return of the lesser-performing index is less than or equal to zero but greater than or equal to negative 50%, the payout will be par. If the return of either index is less than negative 50%, 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:	Barrier enhanced participation notes
Underlying indexes:	Dow Jones industrial average and Russell 2000
Amount:	$1.93 million
Maturity:	Jan. 31, 2025
Coupon:	0%
Price:	Par
Payout at maturity:	If return of each index is positive, par plus 113.3% of lesser-performing index’s return; if return of lesser-performing index is less than or equal to zero but greater than or equal to negative 50%, par; if return of either index is less than negative 50%, 1% loss for every 1% that lesser-performing index declines from initial level
Initial levels:	28,772.85 for Dow and 1,658.314 for Russell 2000
Barrier levels:	50% of initial levels
Pricing date:	Jan. 28
Settlement date:	Jan. 31
Underwriter:	HSBC Securities (USA) Inc.
Fees:	3.75%
Cusip:	40435U2D5

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