New Issue: HSBC sells $922,000 allocation securities linked to ETF basket

By Marisa Wong

Morgantown, W.Va., May 8 – HSBC USA Inc. priced $922,000 of 0% allocation securities due April 29, 2022 linked to a basket of the SPDR S&P 500 exchange-traded fund, the iShares MSCI EAFE ETF and the iShares MSCI Emerging Markets ETF, according to a 424B2 filing with the Securities and Exchange Commission.

The best performing of the ETFs will be given a 60% weight, the ETF with the second-best performance will be weighted at 40%, and the lowest-performing ETF will not count toward the basket performance.

The payout at maturity will be par of $10 plus the basket return. The notes are not principal protected, so investors will receive less than par if that basket return is negative.

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

Issuer:	HSBC USA Inc.
Issue:	Allocation securities
Underlying basket:	SPDR S&P 500 ETF, iShares MSCI EAFE ETF and iShares MSCI Emerging Markets ETF; best performer will be given a 60% weight, second-best performer will be weighted at 40%
Amount:	$922,500
Maturity:	April 29, 2022
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus the basket return, with full exposure to any losses
Initial levels:	$238.55 for SPDR S&P, $63.99 for EAFE, $40.20 for EM
Pricing date:	April 25
Settlement date:	April 28
Agents:	HSBC Securities (USA) Inc. and UBS Financial Services Inc.
Fees:	3.5%
Cusip:	40435D763

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