New Issue: HSBC prices $2.69 million income plus notes tied to five stocks with 0.5% minimum coupon

By Toni Weeks

San Diego, Aug. 30 - HSBC USA Inc. priced $2.69 million of income plus notes with minimum coupon due Sept. 3, 2019 linked to a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying companies are Altria Group, Inc., Eli Lilly and Co., Lockheed Martin Corp., Procter & Gamble Co. and Verizon Communications Inc.

If every underlying stock closes above its initial level on the valuation date, the coupon will be 10.5%. Otherwise, the notes will pay the minimum coupon of 0.5%. Interest is payable annually.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Income plus notes
Underlying stocks:	Altria Group, Inc. (Symbol: MO), Eli Lilly and Co. (Symbol: LLY), Lockheed Martin Corp. (Symbol: LMT), Procter & Gamble Co. (Symbol: PG) and Verizon Communications Inc. (Symbol: VZ)
Amount:	$2.69 million
Maturity:	Sept. 3, 2019
Coupon:	If every underlying stock finishes above initial level, 10.5%; otherwise, 0.5%
Price:	Par
Payout at maturity:	Par
Initial prices:	$34.51 for Altria, $44.71 for Eli Lilly, $92.48 for Lockheed Martin, $66.99 for Procter & Gamble and $42.67 for Verizon
Pricing dates:	Aug. 28
Settlement date:	Aug. 31
Agent:	HSBC Securities (USA) Inc.
Fees:	4.2%
Cusip:	4042K12V4

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