New Issue: HSBC sells $806,000 callable contingent income barrier notes on two ETFs

By Sarah Lizee

Olympia, Wash., Dec. 31 – HSBC USA Inc. priced $806,000 of callable contingent income barrier notes due Dec. 30, 2022 linked to the least performing of the SPDR S&P Biotech ETF and the Technology Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

Every six months, the notes will pay a contingent coupon at an annual rate of 10.1% if each ETF closes at or above its coupon barrier, 60% of its initial level, on the observation date for that period.

The notes are callable semiannually at par.

The payout at maturity will be par unless either ETF finishes below its 60% trigger level, in which case investors will be fully exposed to the decline of the lowest performing ETF.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Callable contingent income barrier notes
Underlying ETFs:	SPDR S&P Biotech ETF and Technology Select Sector SPDR fund
Amount:	$806,000
Maturity:	Dec. 30, 2022
Coupon:	10.1%, payable every six months if each ETF closes at or above coupon barrier on determination date for that period
Price:	Par
Payout at maturity:	If each ETF finishes at or above trigger level, par; otherwise, exposure to decline of worst-performing ETF
Call:	Callable semiannually at par
Initial levels:	$96.70 for biotech, $90.95 for technology
Coupon barriers:	$58.02 for biotech, $54.57 for technology; 60% of initial levels
Trigger levels:	$58.02 for biotech, $54.57 for technology; 60% of initial levels
Pricing date:	Dec. 20
Settlement date:	Dec. 27
Agent:	HSBC Securities (USA) Inc.
Fees:	None
Cusip:	40435UN34

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