New Issue: HSBC prices $6.22 million trigger autocallable optimization notes on Euro Stoxx 50

By Wendy Van Sickle

Columbus, Ohio, Dec. 31 – HSBC USA Inc. priced $6.22 million of 0% trigger autocallable optimization securities due Dec. 31, 2020 linked to the Euro Stoxx 50 index, according to a 424B2 filed with the Securities and Exchange Commission.

Beginning in December 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, 62% of the initial index 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.

HSBC Securities (USA) Inc. is the underwriter, and UBS Financial Services Inc. is acting as agent.

Issuer:	HSBC USA Inc.
Issue:	Trigger autocallable optimization securities
Underlying index:	Euro Stoxx 50
Amount:	$6,223,900
Maturity:	Dec. 31, 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. 28, 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:	3,314.28
Trigger level:	2,054.85, 62% of initial level
Pricing date:	Dec. 29
Settlement date:	Dec. 31
Underwriter:	HSBC Securities (USA) Inc.
Agent:	UBS Financial Services Inc.
Fees:	2.5%
Cusip:	40434K313

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