$2.00 per unit, which represents a return of 20% over the principal amount. The PHLX Housing Sector SM Index (Bloomberg symbol: “HGX”), a price return indexģ62.78 (120% of the Starting Value, rounded to two decimal places). The scheduled calculation day is subject to postponement in the event of Market Disruption Events, as described beginning on page PS-21 of product supplement EQUITY INDICES SUN-1. The closing level of the Index on the calculation day. $0.87 per unit if called on the Observation Date (which representsĪ return of 8.70% over the principal amount). The notes are subject to an automatic call, and the initial estimated value is based on an assumed tenor ofĪpproximately the fifth business day following the Observation Date, subject to postponement if the Observation Date is postponed, as described on page PS-20 of product supplement EQUITY INDICES SUN-1. Notes, including the hedging related charge described below, reduced the economic terms of the notes (including the Call PremiumsĪnd Call Amounts). The difference in the borrowing rate, as well as the underwriting discount and the costs associated with hedging the This internal funding rate is typically lower than the rate we would use when we issue conventional fixed or floating rate debt Market prices for hedging arrangements related to the notes (which may include call options, put options or other derivatives). Pricing models and reflects our internal funding rate, which is the borrowing rate we pay to issue market-linked notes, and the The estimated initial value was determined by reference to our or our affiliates’ internal The estimated initial value of the notes is less than the price On the notes will be calculated based on the $10 principal amount per unit and will depend on the performance of the Index, subject If theĮnding Value is less than the Starting Value you will lose all or a portion of the principal amount of your notes. Step Up Value, you will participate on a 1-for-1 basis in the increase in the level of the Index above the Starting Value. If the notes are not called, at maturity, the notes provide you with a Step Up Payment if the Ending Value of the Index isĮqual to or greater than the Starting Value, but is not greater than the Step Up Value.
Housing Sector SM Index (the “Index”), is equal to or greater than the Call Level on the relevant Observationĭate. The notes will be automatically called at the Call Amount if the Observation Level of the Index, which is the PHLX Notes, including any repayment of principal, depend on the credit risk of HSBC and its ability to satisfy its obligations as theyĬome due. The notes will rank equally with all of our other senior unsecured debt. The notes are not deposit liabilities or other obligations of a bank andĪre not guaranteed or insured by the Federal Deposit Insurance Corporation or any other governmental agency of the United States Not a direct or indirect obligation of any third party. Housing Sector SM Index, due Aug(the “notes”) are our senior unsecured debt securities and are The Autocallable Market-Linked Step Up Notes Linked to the PHLX Linked to the PHLX Housing Sector SM Index, due August 28, 2020 On page TS-2 and “Risk Factors” beginning on page TS-7 of this term sheet for additional information. Of the notes at any time will reflect many factors and cannot be predicted with accuracy. Is $9.604 per unit, which is less than the public offering price listed below. The estimated initial value of the notes on the pricing date On page PS-7 of product supplement EQUITY INDICES SUN-1. See “Risk Factors” beginning on page TS-7 of this term sheet and beginning Including different investment risks and costs.
There are important differences between the notes and a conventional debt security, Investing in the notes involves a number of risks.
The notes are being issued by HSBC USA Inc. “Supplement to the Plan of Distribution-Role of MLPF&S” In addition to the underwriting discount set forth below, the notes include a hedging-related charge of $0.075 per unit. If the notes are not called, at maturity:Ī return of 20% if the Index is flat or increases up to the Step Up ValueĪ return equal to the percentage increase in the Index if the Index increases above the Step Up Valueġ-to-1 downside exposure to decreases in the Index, with up to 100.00% of the principal amount at riskĪll payments are subject to the credit risk of HSBC USA Inc. The Observation Date will occur approximately one year after the pricing date
STEP 7 5.5 SP4 HF9 PLUS
Maturity of approximately two years, if not called prior to maturityĪutomatic call of the notes per unit at $10 plus the Call Premium ($0.87) if the Index is flat or increases above 100% of the Step Up Notes Linked to the PHLX Housing Sector SM Index Product Supplement EQUITY INDICES SUN-1 dated Calculated in accordance with Rule 457(r) of the Securities