New Issue: HSBC prices $1.63 million allocation securities linked to basket of three ETFs

By Wendy Van Sickle

Columbus, Ohio, Feb. 28 – HSBC USA Inc. priced $1.63 million of 0% allocation securities due Feb. 28, 2022 linked to a basket of the SPDR S&P 500 exchange-traded fund, the iShares MSCI EAFE ETF and the iShares MSCI Emerging Markets ETF, according to an FWP filing with the Securities and Exchange Commission.

The best performing of the ETFs will be given a 60% weight, the ETF with the second-best performance will be weighted at 40%, and the lowest-performing ETF will not count toward the basket performance.

The payout at maturity will be par of $10 plus the basket return. The notes are not principal protected, so investors will receive less than par if that basket return is negative.

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

Issuer:	HSBC USA Inc.
Issue:	Allocation securities
Underlying basket:	SPDR S&P 500 ETF trust, iShares MSCI EAFE ETF and iShares MSCI Emerging Markets ETF; 60% weight to best performer, 40% weight to second-best performer
Amount:	$1,628,000
Maturity:	Feb. 28, 2022
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus the basket return
Initial prices:	$236.44 for SPDR S&P, $60.83 for iShares EAFE, $38.94 for iShares EM
Pricing date:	Feb. 23
Settlement date:	Feb. 28
Agents:	UBS Financial Services Inc. and HSBC Securities (USA) Inc.
Fees:	3.5%
Cusip:	40435C351

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