New Issue: HSBC sells $575,000 contingent buffered notes on Industrial Select fund

By Marisa Wong

Morgantown, W.Va., Dec. 20 – HSBC USA Inc. priced $575,000 of 0% contingent buffered notes due June 19, 2019 linked to the Industrial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

A knock-out event occurs if the final price is less than the initial price by more than 15%.

If a knock-out event has not occurred, the payout at maturity will be par plus the ETF return, capped at 18.75%, subject to a minimum payout of par.

If a knock-out event has occurred, the payout will be par plus the ETF return, with full exposure to losses.

HSBC Securities (USA) Inc. is the agent. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.

Issuer:	HSBC USA Inc.
Issue:	Contingent buffered notes
Underlying ETF:	Industrial Select Sector SPDR fund
Amount:	$575,000
Maturity:	June 19, 2019
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus the ETF return, capped at 18.75%, subject to a minimum payout of par, unless ETF falls by more than 15%, in which case par plus the ETF return, with full exposure to losses
Initial value:	$74.52
Pricing date:	Dec. 15
Settlement date:	Dec. 20
Agent:	HSBC Securities (USA) Inc. with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents
Fees:	1.25%
Cusip:	40435FPD3

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