New Issue: HSBC prices $22.42 million capped Leveraged Index Return Notes on gold

By Toni Weeks

San Diego, Jan. 8 - HSBC USA Inc. priced $22.42 million of 0% capped Leveraged Index Return Notes due Feb. 3, 2015 linked to the gold spot price, according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par plus double any gold price gain, up to a maximum return of 18.4%.

Investors will receive par if the gold price falls by up to 5% and will be exposed to any losses beyond 5%.

Bank of America Merrill Lynch is the agent.

Issuer:	HSBC USA Inc.
Issue:	Capped Leveraged Index Return Notes
Underlying commodity:	Gold spot price
Amount:	$22,419,340
Maturity:	Feb. 3, 2015
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus double any gain in the gold spot price, subject to cap of 18.4%; par if gold price falls by up to 5%, exposure to losses beyond 5%
Initial Price:	$1,648.00
Threshold price:	$1,565.60, 95% of initial price
Pricing date:	Jan. 4
Settlement date:	Jan. 10
Agent:	Bank of America Merrill Lynch
Fees:	2%
Cusip:	40433T612

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