New Issue: HSBC prices $375,000 annual income opportunity notes on industry titans

By Marisa Wong

Madison, Wis., Feb. 27 - HSBC USA Inc. priced $375,000 of annual income opportunity notes due Feb. 28, 2020 linked to a basket of 10 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes Altria Group, Inc., Amgen Inc., Apple Inc., AT&T Inc., Exelon Corp., Maxim Integrated Products, Inc., Monsanto Co., Pfizer Inc., Silver Wheaton Corp. and Wells Fargo & Co.

Interest is payable annually and will equal the greater of (a) the average of the performances of the basket stocks and (b) 0.5%.

A stock's performance will be equal to the auto cap rate, 7%, if its return is greater than or equal to zero. If a stock's return is negative, its performance will be the greater of its return and negative 15%.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Annual income opportunity notes
Underlying stocks:	Altria Group, Inc., Amgen Inc., Apple Inc., AT&T Inc., Exelon Corp., Maxim Integrated Products, Inc., Monsanto Co., Pfizer Inc., Silver Wheaton Corp. and Wells Fargo & Co.
Amount:	$375,000
Maturity:	Feb. 28, 2020
Coupon:	Average of performances of basket stocks, subject to minimum interest rate of 0.5%; payable annually
Stock performance:	If stock's return is greater than or equal to zero, 7%; otherwise, greater of stock return and negative 15%
Price:	Par
Payout at maturity:	Par
Pricing date:	Feb. 25
Settlement date:	Feb. 28
Agent:	HSBC Securities (USA) Inc.
Fees:	4.25%
Cusip:	40432XB42

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