New Issue: HSBC prices $2.5 million income plus notes on three stocks with 1% minimum coupon

By Marisa Wong

Madison, Wis., Oct. 9 – HSBC USA Inc. priced $2.5 million of income plus notes with minimum coupon due Oct. 8, 2020 linked to a basket of three common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying companies are Apple Inc., Boeing Co. and PepsiCo, Inc.

If every underlying stock closes at or above its initial level on a coupon valuation date, the coupon will be the minimum rate of 1% plus a performance-based coupon of 3%. Otherwise, the notes will pay the minimum coupon of 1%. Interest will be payable annually.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Income plus notes
Underlying stocks:	Apple Inc. (Symbol: AAPL), Boeing Co. (Symbol: BA), PepsiCo, Inc. (Symbol: PEP)
Amount:	$2,504,000
Maturity:	Oct. 8, 2020
Coupon:	If every underlying stock finishes at or above initial level, 4%; otherwise, 1%; payable annually
Price:	Par
Payout at maturity:	Par
Initial prices:	$99.62 for Apple, $126.36 for Boeing, $93.50 for PepsiCo, Inc.
Pricing date:	Oct. 3
Settlement date:	Oct. 8
Agent:	HSBC Securities (USA) Inc.
Fees:	3.85%
Cusip:	40433BRC4

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