New Issue: HSBC sells $976,000 callable notes with contingent return on S&P 500

By Kiku Steinfeld

Chicago, April 26 – HSBC USA Inc. priced $976,000 of callable notes with contingent return due June 28, 2024 linked to the performance of the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent monthly coupon at an annual rate of 7.2% if the index closes at or above the 70% coupon trigger level on the related observation date.

HSBC may call the notes on any monthly coupon payment date after six months.

The payout at maturity will be par plus the final contingent coupon unless the index finishes below its 70% barrier level, in which case investors will lose 1% for every 1% decline of the index from its initial level.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Callable notes with contingent return
Underlying index:	S&P 500 index
Amount:	$976,000
Maturity:	June 28, 2024
Coupon:	7.2%, payable monthly if the index closes at or above coupon trigger on related observation date
Price:	Par
Payout at maturity:	Par plus contingent coupon unless the index finishes below barrier value, in which case investors will be fully exposed to index decline from initial level
Call option:	At par on any monthly coupon payment date after six months
Initial level:	3,822.39
Coupon trigger:	2,675.673; 70% of initial level
Barrier value:	2,675.673; 70% of initial level
Pricing date:	Dec. 22, 2022
Settlement date:	Dec. 28, 2022
Agent:	HSBC Securities (USA) Inc.
Fees:	1.5%
Cusip:	40441XYE4

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