New Issue: HSBC sells $12.15 million trigger step notes linked to S&P 500

By Marisa Wong

Morgantown, W.Va., Oct. 6 – HSBC USA Inc. priced $12.15 million of 0% trigger step securities due Sept. 30, 2020 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index return is zero or positive, the payout at maturity will be par of $10 plus the greater of 31% and the index return. Investors will receive par if the index declines by 25% or less and will be fully exposed to the index’s decline from its initial level if it declines beyond 25%.

HSBC Securities (USA) Inc. is the underwriter. UBS Financial Services Inc. is acting as agent.

Issuer:	HSBC USA Inc.
Issue:	Trigger step securities
Underlying index:	S&P 500
Amount:	$12,145,180
Maturity:	Sept. 30, 2020
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If index return is zero or positive, par plus greater of 31% and index return; par if index declines by 25% or less; full exposure to decline from initial level if index declines beyond 25%
Initial level:	2,159.93
Downside threshold:	1,619.95, 75% of initial level
Pricing date:	Sept. 27
Settlement date:	Sept. 30
Underwriter:	HSBC Securities (USA) Inc.
Agent:	UBS Financial Services Inc.
Fees:	3%
Cusip:	40435B833

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