New Issue: HSBC prices $2,24 million contingent income callables linked to Stoxx 50

By Susanna Moon

Chicago, Oct. 20 – HSBC USA Inc. priced $16.21 million of contingent income callable securities due Oct. 18, 2027 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a contingent quarterly coupon at an annual rate of 7% if the index closes at or above its 75% coupon barrier on the determination date for that quarter.

The notes are callable at par on any quarterly determination date after one year.

The payout at maturity will be par plus the contingent coupon unless the index finishes below its 60% downside threshold, in which case investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the agent. Distribution is through Morgan Stanley Wealth Management.

Issuer:	HSBC USA Inc.
Issue:	Contingent income callable securities
Underlying index:	Euro Stoxx 50
Amount:	$2,236,000
Maturity:	Oct. 18, 2027
Coupon:	7% per year, payable quarterly if index closes at or above coupon barrier on review date for that quarter
Price:	Par
Payout at maturity:	If index finishes at or above downside threshold, par; otherwise, 1% loss per 1% decline
Call option:	At par on any quarterly determination date beginning Oct. 15, 2018
Initial level:	3,604.55
Coupon barrier:	2,703.4125, 75% of initial level
Downside threshold:	2,162.73, 60% of initial level
Pricing date:	Oct. 13
Settlement date:	Oct. 18
Agent:	HSBC Securities (USA) Inc.
Distribution:	Morgan Stanley Wealth Management
Fees:	3%
Cusip:	40435FHU4

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