New Issue: HSBC prices $4.8 million contingent income notes on S&P 500

By Wendy Van Sickle

Columbus, Ohio, April 5 – HSBC USA Inc. priced $4.8 million of contingent income securities due April 5, 2027 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will pay a quarterly contingent coupon at an annual rate of 7.2% if the index closes at or above the 75% barrier level on the review date for that quarter.

The payout at maturity will be par plus the contingent interest unless the index finishes below the 65% downside threshold level, in which case investors will lose 1% for each 1% index decline.

HSBC Securities (USA) Inc. is the agent and Morgan Stanley Wealth Management is handling distribution.

Issuer:	HSBC USA Inc.
Issue:	Contingent income securities
Underlying index:	S&P 500
Amount:	$4,795,000
Maturity:	April 5, 2027
Coupon:	7.2% per year, payable each quarter that index closes at or above coupon barrier on review date for that quarter
Price:	Par
Payout at maturity:	Par plus contingent interest unless index falls below downside threshold, in which case full exposure to any losses
Initial level:	2,362.72
Coupon barrier:	1,772.04, 75% of initial level
Downside threshold:	1,417.632, 60% of initial level
Pricing date:	March 31
Settlement date:	April 5
Agent:	HSBC Securities (USA) Inc. with Morgan Stanley Wealth Management as a distributor
Fees:	3.5%
Cusip:	40433UY59

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