New Issue: HSBC prices $14.77 million Stars linked to S&P 500

By Angela McDaniels

Tacoma, Wash., Jan. 30 – HSBC USA Inc. priced $14.77 million of 0% Strategic Accelerated Redemption Securities due Feb. 9, 2018 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annualized call premium of 7.5% if the index closes at or above its initial level on July 21, 2017, Oct. 20, 2017 or Feb. 2, 2018.

If the notes are not called, it means the index has finished below its initial level and investors will be exposed to that decline at maturity.

BofA Merrill Lynch is the agent.

Issuer:	HSBC USA Inc.
Issue:	Strategic Accelerated Redemption Securities
Underlying index:	S&P 500
Amount:	$14,765,760
Maturity:	Feb. 9, 2018
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par minus 1% for every 1% that index declines from initial level
Call:	At par plus 7.5% per year if index closes at or above initial level on July 21, 2017, Oct. 20, 2017 or Feb. 2, 2018
Initial index level:	2,296.68
Pricing date:	Jan. 26
Settlement date:	Feb. 2
Agent:	BofA Merrill Lynch
Fees:	1.25%
Cusip:	40435C500

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