New Issue: HSBC sells $1.4 million four-year Stars tied to three airline stocks

By Marisa Wong

Morgantown, W.Va., Sept. 11 – HSBC USA Inc. priced $1.4 million of 0% Strategic Accelerated Redemption Securities due Sept. 3, 2021 linked to the worst performing of the common stocks of Delta Air Lines, Inc., Southwest Airlines Co. and United Continental Holdings, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call premium of 25% if each stock closes at or above its initial price on an annual observation date.

If the notes are not called, investors will lose 1% for every 1% decline of the least performing stock below its initial price.

BofA Merrill Lynch is the agent.

Issuer:	HSBC USA Inc.
Issue:	Strategic Accelerated Redemption Securities
Underlying stocks:	Delta Air Lines, Inc., Southwest Airlines Co. (Symbol: LUV) and United Continental Holdings, Inc. (Symbol: UAL)
Amount:	$1.4 million
Maturity:	Sept. 3, 2021
Coupon:	0%
Price:	Par of $10
Payout at maturity:	1% loss for every 1% decline of least performing stock
Call:	At par plus 25% per year if each stock closes at or above initial price on annual observation date
Initial prices:	$47.19 for Delta, $52.14 for Southwest, $61.96 for United
Pricing date:	Aug. 31
Settlement date:	Sept. 8
Agent:	BofA Merrill Lynch
Fees:	2%
Cusip:	40435G444

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