New Issue: HSBC sells $5.25 million digital barrier securities tied to S&P, Russell

By Sarah Lizee

Olympia, Wash., Aug. 28 – HSBC USA Inc. priced $5.25 million of 0% digital barrier securities due Aug. 31, 2023 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.

If the lesser performing index finishes at or above its initial level, the payout at maturity will be par plus the greater of the gain of the lesser performing index and the digital upside return of 45%.

If the lesser performing index falls but ends at or above its 65% barrier level, the payout at maturity will be par.

Otherwise, investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Digital barrier securities
Underlying indexes:	S&P 500, Russell 2000
Amount:	$5.25 million
Maturity:	Aug. 31, 2023
Coupon:	0%
Price:	Par
Payout at maturity:	If lesser performing index finishes at or above its initial level, par plus the greater of the lesser performing index’s return and 45%; if lesser performing index falls by up to 35%, par; otherwise, full exposure to losses
Initial levels:	2,874.69 for S&P, 1,725.671 for Russell
Pricing date:	Aug. 24
Settlement date:	Aug. 31
Agent:	HSBC Securities (USA) Inc.
Fees:	3%
Cusip:	40435FY43

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