New Issue: HSBC prices $7.33 million 8.75% trigger callable yield notes linked to two funds

By Sarah Lizee

Olympia, Wash., Nov. 7 – HSBC USA Inc. priced $7.33 million of 8.75% trigger callable yield notes due Oct. 30, 2020 linked to the least performing of the SPDR S&P 500 ETF trust and the iShares Russell 2000 ETF, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

The notes are callable at par on any coupon payment date.

The payout at maturity will be par of $10 unless any fund finishes below its 75% trigger level, in which case investors will be fully exposed to any losses of the worst performing fund.

UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.

Issuer:	HSBC USA Inc.
Issue:	Trigger callable yield notes
Underlying funds:	SPDR S&P 500 ETF trust and iShares Russell 2000 ETF
Amount:	$7,333,000
Maturity:	Oct. 30, 2020
Coupon:	8.75%, payable quarterly
Price:	Par of $10
Call option:	At par on any coupon payment date
Payout at maturity:	If each fund finishes at or above trigger level, par; otherwise, full exposure to any losses of worst performing fund
Initial levels:	$303.21 for S&P ETF, $156.85 for Russell ETF
Trigger levels:	$227.41 for S&P ETF, $117.64 for Russell ETF; 75% of initial levels
Pricing date:	Oct. 29
Settlement date:	Oct. 31
Agents:	UBS Financial Services Inc. and HSBC Securities (USA) Inc.
Fees:	None
Cusip:	40438B772

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