New Issue: HSBC prices $872,000 contingent income barrier notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., Oct. 7 – HSBC USA Inc. priced $872,000 of contingent income barrier notes due Oct. 8, 2024 linked to the S&P 500 index, according to a 424B2 with the Securities and Exchange Commission.

The interest rate is 6.1% for the first five years. During the last five years, the notes will pay a contingent coupon each quarter at an annual rate of 6.1% only if the index closes at or above the barrier level, 70% of the initial index level, on the determination date for that quarter.

If the index finishes at or above the barrier level, the payout at maturity will be par plus the contingent coupon. If the index finishes below the barrier level, investors will be fully exposed to the index decline.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Contingent income barrier notes
Underlying index:	S&P 500
Amount:	$872,000
Maturity:	Oct. 8, 2024
Coupon:	6.1% for first five years; during last five years, notes pay contingent coupon each quarter at annual rate of 6.1% only if the index closes at or above barrier level on determination date for that quarter
Price:	Par
Payout at maturity:	If index finishes at or above barrier level, par plus contingent coupon; otherwise, full exposure to losses
Initial index level:	1,967.90
Coupon trigger:	1,377.53, 70% of initial level
Pricing date:	Oct. 3
Settlement date:	Oct. 8
Agent:	HSBC Securities (USA) Inc.
Fees:	None
Cusip:	40433BPE2

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