New Issue: HSBC prices $765,000 buffered return enhanced notes linked to Qualcomm

By Sarah Lizee

Olympia, Wash., May 1 – HSBC USA Inc. priced $765,000 of 0% buffered return enhanced notes due May 13, 2020 linked to the common stock of Qualcomm Inc., according to a 424B2 filing with the Securities and Exchange Commission.

If the stock return is greater than zero, the payout at maturity will be par plus 150% of the stock return, subject to a maximum return of 19.53%. Investors will receive par if the stock declines by 15% or less and will lose 1.1765% for every 1% that it might decline beyond 15%.

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

Issuer:	HSBC USA Inc.
Issue:	Buffered return enhanced notes
Underlying stock:	Qualcomm Inc.
Amount:	$765,000
Maturity:	May 13, 2020
Coupon:	0%
Price:	Par
Payout at maturity:	If stock return is greater than zero, par plus 150% of stock return, subject to maximum return of 19.53; par if stock declines by 15% or less; 1.1765% loss for every 1% that stock declines beyond 15%
Initial stock price:	$86.64
Final stock price:	Average of stock’s closing levels on five trading days ending May 8, 2020
Pricing date:	April 26
Settlement date:	May 1
Underwriter:	HSBC Securities (USA) Inc.
Agents:	JPMorgan Chase Bank NA and J.P. Morgan Securities LLC
Fees:	1%
Cusip:	40435UMB7

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