New Issue: HSBC prices $5 million notes with buffer linked to S&P 500

By Angela McDaniels

Tacoma, Wash., Jan. 23 – HSBC USA Inc. priced $5 million of 0% notes due Jan. 25, 2019 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index return is positive, the payout at maturity will be par of $10 plus the index return, subject to a maximum return of 13.42%. The payout will be par if the index declines by 15% or less. Investors will lose 1% for every 1% that the index may decline beyond 15%.

BofA Merrill Lynch is the agent.

Issuer:	HSBC USA Inc.
Issue:	Notes
Underlying index:	S&P 500
Amount:	$5 million
Maturity:	Jan. 25, 2019
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If index return is positive, par plus index return, up to 13.42% maximum return; if index falls by 15% or less, par; 1% loss for every 1% that index may decline beyond 15%
Initial index level:	2,263.69
Final index level:	Average of index’s closing levels on five trading days ending Jan. 22, 2019
Pricing date:	Jan. 19
Settlement date:	Jan. 26
Underwriter:	BofA Merrill Lynch
Fees:	2%
Cusip:	40435C757

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