New Issue: HSBC prices $5 million five-year income plus notes linked to five stocks

By Susanna Moon

Chicago, Dec. 28 – HSBC USA Inc. priced $5 million of income plus notes due Dec. 28, 2021 linked to five common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

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

Interest will be 2%, the minimum coupon, plus another performance-based coupon of 2% 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), Eli Lilly & Co. (NYSE: LLY), Altria Group, Inc. (NYSE: MO), Microsoft Corp. (Nasdaq: MSFT) and Verizon Communications, Inc. (NYSE: VZ)
Amount:	$5 million
Maturity:	Dec. 28, 2021
Coupon:	4% if each basket stock closes at or above initial share price on valuation date or 2% otherwise; payable annually
Price:	Par
Payout at maturity:	Par plus last coupon
Initial levels:	$116.29 for Apple, $73.26 for Eli Lilly, $67.68 for Altria, $63.55 for Microsoft and $53.65 for Verizon
Pricing date:	Dec. 22
Settlement date:	Dec. 28
Agent:	HSBC Securities (USA) Inc.
Fees:	2.15%
Cusip:	40433UJ98

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