New Issue: HSBC sells $3 million capped buffered AMPS due 2022 tied to tech basket

By Susanna Moon

Chicago, Oct. 19 – HSBC USA Inc. priced $3 million of 0% buffered Accelerated Market Participation Securities due March 31, 2022 linked to a basket consisting of the shares of Facebook, Inc., Alphabet, Inc. and Alibaba Group Holding Ltd., equally weighted, according to an FWP filing with the Securities and Exchange Commission.

The payout at maturity will be par plus 1.25 times any basket gain, up to a maximum return of 50%.

Investors will receive par if the basket falls by up to 10% and will lose 1% for every 1% decline beyond 10%.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Buffered Accelerated Market Participation Securities
Underlying basket:	Facebook, Inc. (Symbol: FB), Alphabet, Inc. (Symbol: GOOG) and Alibaba Group Holding Ltd. (Symbol: BABA), equally weighted
Amount:	$3 million
Maturity:	March 31, 2022
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 125% of any basket gain, up to 50% cap; par if basket declines by 10% or less; 1% loss per 1% drop beyond 10%
Initial levels:	$166.95 for Facebook, $1,194.06 for Alphabet and $165.40 for Alibaba
Pricing date:	Sept. 26
Settlement date:	Sept. 28
Agent:	HSBC Securities (USA) Inc.
Fees:	2.85%
Cusip:	40435F5E3

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