New Issue: HSBC prices $1.28 million return enhanced notes on SPDR S&P Bank ETF

By Marisa Wong

Morgantown, W.Va., June 28 – HSBC USA Inc. priced $1.28 million of 0% return enhanced notes due July 11, 2018 linked to the SPDR S&P Bank exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the fund return is positive, the payout at maturity will be par plus double the fund gain, subject to a maximum return of 20%.

Investors will be fully exposed to any losses.

HSBC Securities (USA) Inc. is the agent. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC will act as placement agents.

Issuer:	HSBC USA Inc.
Issue:	Return enhanced notes
Underlying ETF:	SPDR S&P Bank ETF
Amount:	$1.28 million
Maturity:	July 11, 2018
Coupon:	0%
Price:	Par
Payout at maturity:	If index return is positive, par plus 2 times index gain, return capped at 20%; if index return is negative, one-to-one exposure to decline
Initial price:	$41.92
Final price:	Average of closing prices on five trading days ending July 6, 2018
Pricing date:	June 23
Settlement date:	June 28
Agent:	HSBC Securities (USA) Inc. with JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC as placement agents
Fees:	1%
Cusip:	40435FAM9

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