New Issue: HSBC prices $10.8 million market-linked step-up notes tied to the Dow

By Marisa Wong

Morgantown, W.Va., Aug. 29 – HSBC USA Inc. priced $10.8 million of 0% market-linked step-up notes due Aug. 27, 2021 linked to the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.

If the index finishes above the step-up value – 136.75% of the initial level – the payout at maturity will be par plus the index gain.

If the index finishes at or below the step-up level but at or above the initial level, the payout will be par plus the step-up return of 36.75%.

If the index falls by up to 15%, the payout will be par.

Investors will be exposed to losses beyond 15%.

BofA Merrill Lynch is the agent.

Issuer:	HSBC USA Inc.
Issue:	Market-linked step-up notes
Underlying index:	Dow Jones industrial average
Amount:	$10,797,630
Maturity:	Aug. 27, 2021
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	If the index finishes above the step-up value, par plus the index gain; if the index finishes at or below the step-up level but at or above the initial level, par plus 36.75%; par if index falls by up to 15%; exposure to losses beyond 15%
Initial level:	18,448.41
Step-up value:	25,228.20, 136.75% of initial level
Threshold value:	15,681.15, 85% of initial level
Pricing date:	Aug. 25
Settlement date:	Sept. 1
Underwriter:	BofA Merrill Lynch
Fees:	2.5%
Cusip:	40434V244

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