New Issue: HSBC prices $1.68 million autocallables with rebate tied to index, fund

By Susanna Moon

Chicago, Nov. 18 – HSBC USA Inc. priced $1.68 million of buffered autocallable yield notes with rebate return due May 19, 2017 linked to worst of the Russell 2000 index and the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par plus an annualized premium of 9% if each underlying component closes at or above the initial price on any semiannual call observation date.

The payout at maturity will be par plus a rebate return of 7% unless either component finishes below the 80% barrier level, in which case investors will lose 1.25% for each 1% decline of the worse performing component.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Buffered autocallable yield notes with rebate return
Underlyings:	Russell 2000 index and the iShares MSCI EAFE ETF
Amount:	$1,678,000
Maturity:	May 19, 2017
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 7% rebate unless either component falls by more than 20%, in which case 1.25% loss per 1% decline of worse performing component
Call:	At par plus 9% annualized if each component closes at or above initial share price on any semiannual call date beginning May 16, 2016
Initial levels:	1,156.083 for Russell, $60.01 for fund
Barrier levels:	80% of initial levels
Pricing date:	Nov. 16
Settlement date:	Nov. 19
Agent:	HSBC Securities (USA) Inc.
Fees:	0.5%
Cusip:	40433UDK9

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