New Issue: HSBC prices $652,000 income plus notes linked to five stocks

By Angela McDaniels

Tacoma, Wash., May 28 – HSBC USA Inc. priced $652,000 of income plus notes due May 31, 2022 linked to a basket of stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the common stocks of Apple Inc., Cisco Systems, Inc., General Motors Co., Pfizer Inc. and Philip Morris International Inc.

Interest is payable annually. The interest rate will be 1% plus (a) 6% if each basket stock closes at or above its initial share price on the valuation date for that year or (b) 0% otherwise.

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., Cisco Systems, Inc., General Motors Co., Pfizer Inc. and Philip Morris International Inc.
Amount:	$652,000
Maturity:	May 31, 2022
Coupon:	7% if each basket stock closes at or above initial share price on relevant valuation date or 1% otherwise; payable annually
Price:	Par
Payout at maturity:	Par plus last coupon
Initial share prices:	$129.62 for Apple, $28.95 for Cisco, $35.52 for GM, $34.11 for Pfizer and $83.72 for Philip Morris
Pricing date:	May 26
Settlement date:	May 29
Agent:	HSBC Securities (USA) Inc.
Fees:	3.03%
Cusip:	40433BQ68

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