New Issue: HSBC prices $190,000 leveraged notes with contingent downside linked to Dow

By Angela McDaniels

Tacoma, Wash., July 3 – HSBC USA Inc. priced $190,000 of 0% market-linked securities with leveraged upside participation and contingent downside due July 5, 2022 linked to the Dow Jones industrial average, according to a 424B2 filing with the Securities and Exchange Commission.

If the index return is positive, the payout at maturity will be par plus 123% of the index return. If the index decreases by up to 30%, the payout will be par. If the index declines by more than 30%, investors will lose 1% for every 1% that the index declines from its initial level.

HSBC Securities (USA) Inc. and Wells Fargo Securities LLC are the agents.

Issuer:	HSBC USA Inc.
Issue:	Market-linked securities with leveraged upside participation and contingent downside
Underlying index:	Dow Jones industrial average
Amount:	$190,000
Maturity:	July 5, 2022
Coupon:	0%
Price:	Par
Payout at maturity:	If final index level is greater than initial index level, par plus 123% of index return; if final index level is less than or equal to initial index level but greater than or equal to threshold level, par; if final index level is less than threshold level, 1% loss for every 1% that index declines from its initial level
Initial index level:	21,287.03
Threshold level:	14,900.921, 70% of initial level
Pricing date:	June 29
Settlement date:	July 5
Agents:	HSBC Securities (USA) Inc. and Wells Fargo Securities LLC
Fees:	4.35%
Cusip:	40433U7B6

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