New Issue: HSBC prices $940,000 buffered return enhanced notes on index basket

By Sarah Lizee

Olympia, Wash., April 8 – HSBC USA Inc. priced $940,000 of 0% buffered return enhanced notes due April 12, 2021 linked to a basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the Euro Stoxx 50 index (39% weight), the Topix index (26% weight), the FTSE 100 index (15% weight), the S&P/ASX 200 index (11% weight) and the Swiss Market index (9% weight).

If the basket return is greater than zero, the payout at maturity will be par plus 162% of the basket return. Investors will receive par if the basket 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 indexes:	Euro Stoxx 50 index (39% weight), Topix index (26% weight), FTSE 100 index (15% weight), S&P/ASX 200 index (11% weight) and Swiss Market index (9% weight)
Amount:	$940,000
Maturity:	April 12, 2021
Coupon:	0%
Price:	Par
Payout at maturity:	If the basket return is greater than zero, par plus 162% of the basket return; par if the basket declines by 15% or less; 1.1765% loss for every 1% decline beyond 15%
Initial index levels:	3,447.47 for Stoxx, 1,625.75 for Topix, 7,446.87 for FTSE, 6,181.259 for S&P/ASX, and 9,541.15 for Swiss
Pricing date:	April 5
Settlement date:	April 10
Underwriter:	HSBC Securities (USA) Inc.
Agents:	JPMorgan Chase Bank NA and J.P. Morgan Securities LLC
Fees:	1.5%
Cusip:	40435ULN2

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