New Issue: HSBC prices $1.56 million leveraged notes due 2018 tied to index basket

By Susanna Moon

Chicago, Oct. 20 – HSBC USA Inc. priced $1.56 million of 0% leveraged capped notes due July 9, 2018 linked to a weighted basket of indexes, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the Euro Stoxx 50 index with a 37% weight, the FTSE 100 index with a 23% weight, the Topix index with a 23% weight, the Swiss Market index with a 9% weight and the S&P/ASX 200 index with an 8% weight.

The payout at maturity will be par plus triple any basket gain, up to a maximum settlement amount of $1,399 for each $1,000 principal amount.

Investors will be exposed to any losses.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Leveraged capped notes
Underlying basket:	Euro Stoxx 50 index with a 37% weight, FTSE 100 index with a 23% weight, Topix index with a 23% weight, Swiss Market index with a 9% weight and S&P/ASX 200 index with an 8% weight
Amount:	$1,557,000
Maturity:	July 9, 2018
Coupon:	0%
Price:	Par of $1,000
Payout at maturity:	Par plus 3 times any basket gain, capped at 39.9%; exposure to any losses
Initial levels:	3,046.99 for Stoxx, 7,000.06 for FTSE, 1,356.57 for Topix, 8,074.69 for Swiss Market and 5,410.754 for S&P/ASX
Pricing date:	Oct. 18
Settlement date:	Oct. 25
Agent:	HSBC Securities (USA) Inc.
Fees:	None
Cusip:	40433UXW1

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