New Issue: HSBC prices $3.46 million trigger autocallables linked to Russell 2000

By Devika Patel

Knoxville, Tenn., Dec. 7 – HSBC USA Inc. priced $3.46 million of 0% trigger autocallable optimization securities due Nov. 30, 2020 linked to the Russell 2000 index, according to a 424B2 filing with the Securities and Exchange Commission.

Beginning on Dec. 1, 2016, the notes will be called at par of $10 plus a call return of 8% per year if the index closes at or above the initial level on any quarterly observation date.

If the notes are not called and the index finishes at or above the trigger level, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% that the final index level is less than the initial level. The trigger level is 70% of the initial index level.

HSBC Securities (USA) Inc. is the underwriter with UBS Financial Services Inc. as agent.

Issuer:	HSBC USA Inc.
Issue:	Trigger autocallable optimization securities
Underlying index:	Russell 2000
Amount:	$3,462,000
Maturity:	Nov. 30, 2020
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If notes are not called and index finishes at or above trigger level, par; otherwise, 1% loss for every 1% that final index level is less than initial level
Call:	Beginning on Dec. 1, 2016, notes will be called at par plus call return of 8% per year if index closes at or above initial level on any quarterly observation date
Initial index level:	1,198.015
Trigger level:	838.612, 70% of initial level
Pricing date:	Nov. 25
Settlement date:	Nov. 30
Underwriter:	HSBC Securities (USA) Inc.
Agent:	UBS Financial Services Inc.
Fees:	2.5%
Cusip:	40434K479

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