New Issue: HSBC prices $1.13 million seven-year income plus notes on five stocks

By Susanna Moon

Chicago, Nov. 1 – HSBC USA Inc. priced $1.13 million of income plus notes due Oct. 31, 2023 linked to five common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The reference stocks are Apple Inc., International Business Machines Corp., Eli Lilly & Co., Altria Group, Inc. and Verizon Communications, Inc.

Interest will be 1%, the minimum coupon, plus 4.25% if each basket stock closes at or above its initial share price on the valuation date for that year. Interest is payable annually.

The payout at maturity will be par plus the last coupon payment.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Income plus notes
Underlying stocks:	Apple Inc. (Nasdaq: AAPL), International Business Machines Corp. (NYSE: IBM), Eli Lilly & Co. (NYSE: LLY), Altria Group, Inc. and Verizon Communications, Inc. (NYSE: VZ)
Amount:	$1,129,000
Maturity:	Oct. 31, 2023
Coupon:	5.25% if each basket stock closes at or above initial share price on valuation date or 1% otherwise; payable annually
Price:	Par
Payout at maturity:	Par plus last coupon
Initial levels:	$115.59 for Apple, $151.81 for IBM, $76.76 for Eli Lilly, $126.06 for Altria and $47.63 for Verizon
Pricing date:	Oct. 26
Settlement date:	Oct. 31
Agent:	HSBC Securities (USA) Inc.
Fees:	3.75%
Cusip:	40433UWB8

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