New Issue: HSBC prices $2.19 million market plus notes linked to ETF basket

By Toni Weeks

San Luis Obispo, Calif., June 11 – HSBC USA Inc. priced $2.19 million of 0% market plus notes due Dec. 11, 2015 linked to a basket of three equally weighted exchange-traded funds, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the Energy Select Sector SPDR fund, Financial Select Sector SPDR fund and Technology Select Sector SPDR fund.

A knock-out event occurs if the basket closes below the initial level by more than the 16% knock-out buffer amount on any trading day during the life of the notes.

The payout at maturity will be par plus the greater of the basket return and 0% unless a knock-out event has occurred, in which case investors will receive par plus the basket return, with full exposure to any losses.

HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as agent.

Issuer:	HSBC USA Inc.
Issue:	Market plus notes
Underlying basket:	Energy Select Sector SPDR fund, Financial Select Sector SPDR fund and Technology Select Sector SPDR fund, equally weighted
Amount:	$2,185,000
Maturity:	Dec. 11, 2015
Coupon:	0%
Price:	Par
Payout at maturity:	If basket closes below 84% of initial basket level during life of notes, par plus basket return, with exposure to any losses; otherwise, par plus basket return, floor of par
Initial levels:	$96.81 for energy fund, $22.80 for financial fund, $38.19 for technology fund
Initial basket level:	100
Pricing date:	June 6
Settlement date:	June 11
Underwriter:	HSBC Securities (USA) Inc.
Agent:	J.P. Morgan Securities LLC
Fees:	1.25%
Cusip:	40433BEF1

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