New Issue: HSBC prices $1.43 million seven-year income plus notes linked to five stocks

By Wendy Van Sickle

Columbus, Ohio, Jan. 31 – HSBC USA Inc. priced $1.43 million of income plus notes due Jan. 31, 2024 linked to five common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The reference stocks are Boeing Co., Cisco Systems, Inc., McDonald’s Corp., Pfizer, Inc. and Wal-Mart Stores, Inc.

Interest will be 1%, the minimum coupon, plus another performance-based coupon of 8.25% 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:	Boeing Co. (NYSE: BA), Cisco Systems, Inc., (Nasdaq: CSCO), McDonald’s Corp. (NYSE: MCD), Pfizer, Inc. (Nasdaq: PFE) and Wal-Mart Stores, Inc. (NYSE: WMT)
Amount:	$1,432,000
Maturity:	Jan. 31, 2024
Coupon:	9.25% 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:	$169.12 for Boeing, $30.74 for Cisco, $121.88 for McDonald’s, $31.28 for Pfizer and $66.73 for Wal-Mart
Pricing date:	Jan. 26
Settlement date:	Jan. 31
Agent:	HSBC Securities (USA) Inc.
Fees:	3.75%
Cusip:	40433UG42

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