New Issue: HSBC sells $40.97 million digital notes due 2021 tied to SPDR S&P Bank ETF

By Sarah Lizee

Olympia, Wash., May 18 – HSBC USA Inc. priced $40.97 million of 0% digital notes due Nov. 3, 2021 linked to the SPDR S&P Bank ETF, according to a 424B2 filed with the Securities and Exchange Commission.

If the ETF finishes at or above its 80% threshold level, the payout at maturity will be par plus the digital percentage of 21.3%.

Otherwise, investors will lose 1.25% for each 1% decline beyond the buffer.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Digital notes
Underlying asset:	SPDR S&P Bank ETF
Amount:	$40,966,000
Maturity:	Nov. 3, 2021
Coupon:	0%
Price:	Par
Payout at maturity:	If ETF gains or falls by up to 20%, par plus 21.3%; otherwise, 1.25% loss per 1% decline beyond 20%
Initial level:	$26.99
Buffer level:	80% of initial level
Pricing date:	May 14
Settlement date:	May 21
Agent:	HSBC Securities (USA) Inc.
Fees:	1.11%
Cusip:	40438CHK0

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