New Issue: HSBC sells $1.1 million barrier absolute return notes on S&P 500 index

By Sarah Lizee

Olympia, Wash., Nov. 27 – HSBC USA Inc. priced $1.1 million of 0% barrier absolute return notes due Nov. 27, 2020 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

A barrier event will occur if the index closes above the upper barrier, 119.75% of the initial level, or below the lower barrier, 80.25% of the initial level, during the life of the notes.

If a barrier event occurs, the payout at maturity will be par plus 4%.

If no barrier event occurs, the payout will be par plus the absolute value of the index return.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Barrier absolute return notes
Underlying index:	S&P 500
Amount:	$1.1 million
Maturity:	Nov. 27, 2020
Coupon:	0%
Price:	Par
Payout at maturity:	If index closes above 119.75% or below 80.25% of initial level during life of notes, par plus 4%; otherwise, par plus absolute value of index return
Initial index level:	2,690.73
Upper barrier:	3,222.149175, 119.75% of initial level
Lower barrier level:	2,159.310825, 80.25% of initial level
Pricing date:	Nov. 19
Settlement date:	Nov. 27
Underwriters:	HSBC Securities (USA) Inc.
Fees:	1.25%
Cusip:	40435UBA1

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