New Issue: HSBC prices $3.86 million buffered return enhanced notes on energy fund

By Marisa Wong

Morgantown, W.Va., Nov. 19 – HSBC USA Inc. priced $3.86 million of 0% buffered return enhanced notes due Nov. 20, 2017 linked to the Energy Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the fund return is positive, the payout at maturity will be par plus 1.5 times the fund return, up to a maximum return of 30.9%. Investors will receive par if the fund declines by 15% or less and will lose 1.1765% for every 1% that the fund declines beyond 15%.

JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are the placement agents.

Issuer:	HSBC USA Inc.
Issue:	Buffered return enhanced notes
Underlying fund:	Energy Select Sector SPDR fund
Amount:	$3.86 million
Maturity:	Nov. 20, 2017
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus 1.5 times any fund gain, up to a maximum return of 30.9%; par if the fund declines by 15% or less; 1.1765% loss for every 1% that the fund declines beyond 15%
Initial price:	$65.99
Pricing date:	Nov. 13
Settlement date:	Nov. 18
Agents:	JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC
Fees:	1.5%
Cusip:	40433UDG8

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