New Issue: HSBC amends coupon for $1.01 million contingent income barrier notes on Russell

By Toni Weeks

San Luis Obispo, Calif., Dec. 2 – HSBC USA Inc. amended the coupon for its recently priced $1,013,000 of contingent income barrier notes due Dec. 1, 2020 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annualized rate of 6.5% if the index closes above the coupon trigger, 70% of the initial level, on the determination date for that quarter. Previously, the issuer announced that the coupon would be 6.25%.

If the index return is negative 30% or more, the payout at maturity will be par. Otherwise, investors will be fully exposed to the index’s decline from its initial level.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Contingent income barrier notes
Underlying index:	Russell 2000
Amount:	$1,013,000
Maturity:	Dec. 1, 2020
Coupon:	6.5%, payable quarterly if index closes above trigger level on determination date for that quarter
Price:	Par
Payout at maturity:	If index finishes at or above 70% barrier level, par; otherwise, full exposure to losses
Initial level:	1,172.416
Trigger level:	820.691, 70% of initial level
Pricing date:	Nov. 21
Settlement date:	Dec. 1
Agent:	HSBC Securities (USA) Inc.
Fees:	3.25%
Cusip:	40433BTJ7

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