New Issue: HSBC sells $3.68 million income plus notes with 5% potential coupon

By Marisa Wong

Morgantown, W.Va., July 10 – HSBC USA Inc. priced $3.68 million of income plus notes due June 28, 2024 linked to five common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying companies are Bristol-Myers Squibb Co., General Motors Corp., HP Inc., Altria Group, Inc. and AT&T Inc.

Interest is payable annually. The interest rate will be 1.75% plus (a) 3.25% if each basket stock closes at or above its initial share price on the valuation date for that year or (b) 0% otherwise.

The payout at maturity will be par plus the final coupon.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Income plus notes
Underlying stocks:	Bristol-Myers Squibb Co. (NYSE: BMY), General Motors Corp. (NYSE: GM), HP Inc. (NYSE: HPQ), Altria Group, Inc. (NYSE: MO) and AT&T Inc. (NYSE: T)
Amount:	$3,684,000
Maturity:	June 28, 2024
Coupon:	1.75% plus (a) 3.25% if each basket stock closes at or above its initial share price on the valuation date for that year or (b) 0% otherwise; payable annually
Price:	Par
Payout at maturity:	Par plus final coupon
Initial levels:	$55.90 for Bristol-Myers, $34.21 for GM, $17.77 for HP, $75.38 for Altria, $37.70 for AT&T
Pricing date:	June 27
Settlement date:	June 30
Agent:	HSBC Securities (USA) Inc.
Fees:	3.75%
Cusip:	40433U5W2

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