Free Writing Prospectus - Filing Under Securities Act Rules 163/433 (fwp)
17 August 2016 - 5:27PM
Edgar (US Regulatory)
Filed Pursuant to Rule 433
Registration Statement No. 333-202524
|
Income Notes Linked to a Basket of 20 Common Equity Securities |
Issuer |
HSBC USA Inc. (“HSBC”) |
Principal Amount |
$10.00 per unit |
Term |
Approximately six years |
Market Measure |
A basket of the following 20 common equity securities (each,
a “Basket Stock”):
Apple Inc. (Bloomberg symbol: AAPL), Allergan plc (Bloomberg
symbol: AGN), AutoNation, Inc. (Bloomberg symbol: AN), Anthem, Inc. (Bloomberg symbol: ANTM), Comcast Corporation (Bloomberg symbol:
CMCSA), Dover Corporation (Bloomberg symbol: DOV), Facebook, Inc. (Bloomberg symbol: FB), Twenty-First Century Fox, Inc. (Bloomberg
symbol: FOXA), Frontier Communications Corporation (Bloomberg symbol: FTR), General Dynamics Corporation (Bloomberg symbol: GD),
HP Inc. (Bloomberg symbol: HPQ), Eli Lilly and Company (Bloomberg symbol: LLY), Lam Research Corporation (Bloomberg symbol: LRCX),
MetLife, Inc. (Bloomberg symbol: MET), Mylan N.V. (Bloomberg symbol: MYL), Newell Brands Inc. (Bloomberg symbol: NWL), PACCAR Inc.
(Bloomberg symbol: PCAR), QUALCOMM Incorporated (Bloomberg symbol: QCOM), Simon Property Group, Inc. (Bloomberg symbol: SPG), AT&T
Inc. (Bloomberg symbol: T) |
Annual Coupon Payment |
The notes will pay interest at a minimum rate of 0.50% per year. If, however, at least 14 of the Basket Stocks have not decreased in value from the pricing date as measured at the close of any Coupon Determination Date, the notes will pay interest at a maximum rate of [4.50%-5.50%] per year |
Payment at Maturity |
The principal amount plus the final Coupon Payment |
Investment Considerations |
This investment is designed for investors who seek annual interest income (subject to a maximum rate), anticipate that at least 14 of the Basket Stocks will be greater than or equal to their respective starting values, are willing to accept that the amount of interest payable is uncertain and may be limited to the Minimum Coupon Payment, and are seeking protection against declines in the Market Measure at maturity. |
Preliminary Offering Documents
|
https://www.sec.gov/Archives/edgar/data/83246/000114420416119942/v446506_fwp.pdf |
Exchange Listing |
No |
You should read the relevant Preliminary Offering Documents
before you invest.
Click on the Preliminary Offering Documents hyperlink
above or call your Financial Advisor for a hard copy.
Risk Factors
Please see the Preliminary Offering Documents for a description
of certain risks related to this investment, including, but not limited to, the following:
| · | Depending on the performance of the Basket Stocks as measured at the close of each Coupon Determination Date, the Coupon Payments
on one or more Coupon Payment Dates may be limited to the Minimum Coupon Payment. |
| · | Payments on the notes, including repayment of principal, are subject to the credit risk of HSBC. If HSBC becomes insolvent
or is unable to pay its obligations, you may lose your entire investment. |
| · | Your investment return is limited to the return represented by the Maximum Coupon Payment and may be less than a comparable
investment directly in the Basket Stocks. |
| · | The estimated initial value of the notes on the pricing date will be less than their public offering price. |
| · | If you attempt to sell the notes prior to maturity, their market value may be lower than both the public offering price and
the estimated initial value of the notes on the pricing date. |
| · | You will have no rights as a holder of the Basket Stocks, and you will not be entitled to receive shares or dividends or other
distributions by the issuers of the Basket Stocks. |
| · | Because one of the 20 Basket Stocks has a limited trading history, your investment in the notes may involve a greater risk
than investing in securities linked to stocks with a more established record of performance. |
Final terms will be set on the pricing date within the given
range for the specified Market-Linked Investment. Please see the Preliminary Offering Documents for complete product disclosure,
including related risks and tax disclosure.
HSBC has filed a registration statement (including a product
supplement, a prospectus supplement, and a prospectus) with the SEC for each of the offerings to which this document relates. Before
you invest, you should read those documents, and the other documents that we have filed with the SEC, for more complete information
about us and these offerings. You may get these documents without cost by visiting EDGAR on the SEC website at www.sec.gov.
Alternatively, HSBC, any agent, or any dealer participating in these offerings will arrange to send you these documents if you
so request by calling MLPF&S toll-free at 1-800-294-1322.
This regulatory filing also includes additional resources:
v447240_fwp.pdf