New Issue: HSBC sells $5.83 million buffered PLUS on iShares MSCI Emerging Markets

By Marisa Wong

Madison, Wis., Jan. 2 - HSBC USA Inc. priced $5.83 million of 0% buffered Performance Leveraged Upside Securities due July 8, 2016 linked to the iShares MSCI Emerging Markets index fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the final share price is greater than the initial share price, the payout at maturity will be par plus 200% of the increase, subject to a maximum return of 25%. Investors will receive par if the share price declines by up to 10% and will lose 1% for every 1% that it declines beyond 10%.

HSBC Securities (USA) Inc. is the agent with distribution through Morgan Stanley Wealth Management.

Issuer:	HSBC USA Inc.
Issue:	Buffered Performance Leveraged Upside Securities
Underlying ETF:	iShares MSCI Emerging Markets index fund
Amount:	$5,834,600
Maturity:	July 8, 2016
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If final share price is greater than initial share price, par plus 200% of increase, capped at 25%; par if share price declines by up to 10%; 1% loss for every 1% that it declines beyond 10%
Initial price:	$41.48
Pricing date:	Dec. 30
Settlement date:	Jan. 3
Agent:	HSBC Securities (USA) Inc. with distribution through Morgan Stanley Wealth Management
Fees:	2.25%
Cusip:	40434B651

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