New Issue: HSBC prices $2.94 million buffered return optimization notes on shale oil and gas stocks

By Susanna Moon

Chicago, Dec. 20 - HSBC USA Inc. priced $2.94 million of buffered return optimization securities due Dec. 22, 2014 linked to a basket of shale oil and gas stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying companies are Consol Energy Inc., Devon Energy Corp., Encana Corp., Newfield Exploration Co., Range Resources Corp. and Southwestern Energy Co., equally weighted.

The payout at maturity will be par plus triple any gain in the basket, up to a maximum return of 45%.

Investors will receive par if the basket falls by up to 20% and will be exposed to any decline beyond 20%.

UBS Financial Services Inc. and HSBC USA Inc. are the agents.

Issuer:	HSBC USA Inc.
Issue:	Buffered return optimization securities
Underlying stocks:	Consol Energy Inc. (CNX), Devon Energy Corp. (DVN), Encana Corp. (ECA), Newfield Exploration Co. (NFX), Range Resources Corp. (RRC) and Southwestern Energy Co., equally weighted
Amount:	$2,942,370
Maturity:	Dec. 22, 2014
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 300% of any basket gain, capped at 45%; par for losses up to 20%; exposure to losses beyond 20%
Pricing date:	Dec. 16
Settlement date:	Dec. 21
Agents:	UBS Financial Services Inc. and HSBC USA Inc.
Fees:	2.5%
Cusip:	40433K876

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