New Issue: HSBC prices $646,000 of autocallable yield notes on S&P, Russell

By Sarah Lizee

Olympia, Wash., July 8 – HSBC USA Inc. priced $646,000 of autocallable yield notes due Oct. 1, 2021 linked to the worst performing of the S&P 500 index and the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a monthly coupon at an annual rate of 8.7%.

The notes will be called at par plus the coupon if each index closes at or above its initial price on any monthly observation date starting Dec. 29.

The payout at maturity will be par unless any index finishes below its barrier level, 70% of the initial price, in which case investors will be exposed to any decline of the least performing index.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable yield notes
Underlying indexes:	S&P 500 index and Russell 2000 index
Amount:	$646,000
Maturity:	Dec. 22, 2020
Coupon:	8.7% per year, payable monthly
Price:	Par
Payout at maturity:	Par unless any index finishes below barrier level, in which case investors will be exposed to any decline of least performing index
Call:	Automatically at par plus coupon if each index closes at or above initial level on any monthly date starting Dec. 29
Initial prices:	3,009.05 for S&P, 1,378.78 for Russell
Barrier levels:	70% of initial prices
Pricing date:	June 26
Settlement date:	July 1
Agent:	HSBC Securities (USA) Inc.
Fees:	None
Cusip:	40438CMR9

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