New Issue: HSBC prices $3.99 million contingent return notes tied to S&P 500

By Marisa Wong

Morgantown, W.Va., Dec. 7 – HSBC USA Inc. priced $3.99 million of 0% contingent return optimization securities due Nov. 30, 2017 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index finishes at or above the 80% trigger level, the payout at maturity will be par of $10 plus the greater of the 6% contingent return and the index gain, up to a maximum return of 20%.

Otherwise, investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.

Issuer:	HSBC USA Inc.
Issue:	Contingent return optimization securities
Underlying index:	S&P 500
Amount:	$3,994,800
Maturity:	Nov. 30, 2017
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If index finishes at or above the trigger level, par plus greater of 6% and index return, capped at 20%; otherwise, full exposure to any losses
Initial index level:	2,089.14
Trigger level:	1,671.32, 80% of initial level
Pricing date:	Nov. 24
Settlement date:	Nov. 30
Agent:	HSBC Securities (USA) Inc. and UBS Financial Services Inc.
Fees:	2%
Cusip:	40434K578

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