New Issue: HSBC sells $2.28 million autocallable barrier notes on Russell, ETF

By Marisa Wong

Morgantown, W.Va., May 1 – HSBC USA Inc. priced $2.28 million of autocallable barrier notes with contingent return due April 28, 2021 linked to the Russell 2000 index and the SPDR S&P Bank exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par plus a call premium of 12% a year if each underlying closes at or above its initial level on any annual observation date.

The payout at maturity will be par plus a contingent payment of 10% unless either underlying falls by more than 30%, in which case investors will be fully exposed to the decline of the worse performer.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Autocallable barrier notes with contingent return
Underliers:	Russell 2000 index and SPDR S&P Bank ETF
Amount:	$2,279,000
Maturity:	April 28, 2021
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 10% unless either underlying falls by more than 30%, in which case investors will be fully exposed to the decline of the worse performer
Call:	Automatically at par plus 12% per year if each underlying closes at or above initial level on an annual review date
Initial level:	1,379.854 for index and $42.36 for ETF
Trigger values:	965.8978 for index and $29.652 for ETF; 70% of initial levels
Pricing date:	April 21
Settlement date:	April 28
Underwriter:	HSBC Securities (USA) Inc.
Fees:	2.15%
Cusip:	40433UZ90

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