New Issue: HSBC prices $3.92 million of leveraged buffered notes linked to indexes

By Susanna Moon

Chicago, Dec. 12 – HSBC USA Inc. priced $3.92 million of 0% leveraged buffered notes due June 19, 2018 linked to a 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 payout of $1,360 for each $1,000 principal amount of notes. The exact cap will be set at pricing.

Investors will receive par if the basket falls by up to 10% and will lose 1.1111% for each 1% decline beyond 10%.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Leveraged buffered notes
Underlying indexes:	Euro Stoxx 50 (37% weight), FTSE 100 (23% weight), Tokyo Stock Price (23% weight), Swiss Market (9% weight) and S&P/ASX 200 (8% weight)
Amount:	$3,292,000
Maturity:	June 19, 2018
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 150% of any basket gain, capped at 36%; par if basket declines by up to 10%; 1.1111% loss for every 1% decline beyond 10%
Initial levels:	3,051.61 for Stoxx, 6,783.79 for FTSE, 1,469.43 for Tokyo Stock Price, 7,875.19 for Swiss Market and 5,440.472 for S&P/ASX
Pricing date:	Nov. 30
Settlement date:	Dec. 7
Agent:	HSBC Securities (USA) Inc.
Fees:	None
Cusip:	40433UD86

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