New Issue: HSBC sells $1.16 million leveraged capped notes on basket

By Sarah Lizee

Olympia, Wash., July 14 – HSBC USA Inc. priced $1.16 million of leveraged capped notes due Oct. 20, 2021 linked to an unequally weighted basket of indexes, according to a 424B2 filed with the Securities and Exchange Commission.

The basket consists of the Euro Stoxx 50 index with a 36% weight, the Topix index with a 29% weight, the FTSE 100 index with a 16% weight, the Swiss Market index with a 11% weight and the S&P/ASX 200 index with an 8% weight.

If the basket return is positive, the payout at maturity will be par plus 300% of the basket return, subject to a maximum payout of $1,209.40 per $1,000 of notes.

Otherwise, investors will be exposed to any basket decline.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Leveraged capped notes
Basket components:	Euro Stoxx 50 (36% weight), Topix (29% weight), FTSE 100 (16% weight), Swiss Market (11% weight) and S&P/ASX 200 (8% weight)
Amount:	$1,161,000
Maturity:	Oct. 20, 2021
Coupon:	0%
Price:	Par of $1,000
Payout at maturity:	If the index return is positive, par plus 300% of the basket return, capped at $1,209.40 per $1,000 of notes; otherwise, investors will be exposed to any basket decline
Initial levels:	3,296.22 for Stoxx, 1,535.20 for Topix, 6,095.41 for FTSE, 10,229.97 for Swiss Market and 5,919.217 for S&P/ASX 200
Pricing date:	July 10
Settlement date:	July 17
Agent:	HSBC Securities (USA) Inc.
Fees:	None
Cusip:	40438CQC8

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