New Issue: HSBC prices $387,000 barrier enhanced participation notes linked to Dow, S&P

By Sarah Lizee

Olympia, Wash., May 1 – HSBC USA Inc. priced $387,000 of 0% barrier enhanced participation notes due April 30, 2024 linked to the lesser performing of the Dow Jones industrial average and the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the return of each index is positive, the payout at maturity will be par plus 113% of the lesser-performing index’s return. If the return of the lesser-performing index is less than or equal to zero but greater than or equal to negative 35%, the payout will be par. If the return of either index is less than negative 35%, investors will lose 1% for every 1% that the lesser-performing index declines from its initial level.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Barrier enhanced participation notes
Underlying indexes:	Dow Jones industrial average and S&P 500
Amount:	$387,000
Maturity:	April 30, 2024
Coupon:	0%
Price:	Par
Payout at maturity:	If return of each index is positive, par plus 113% of lesser-performing index’s return; if return of lesser-performing index is less than or equal to zero but greater than or equal to negative 35%, par; if return of either index is less than negative 35%, 1% loss for every 1% that lesser-performing index declines from initial level
Initial levels:	24,133.78 for Dow and 2,878.48 for S&P
Barrier levels:	65% of initial levels
Pricing date:	April 27
Settlement date:	April 30
Underwriter:	HSBC Securities (USA) Inc.
Fees:	2.25%
Cusip:	40438CEX5

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