New Issue: HSBC prices $70.05 million capped leveraged notes linked to S&P 500

By Angela McDaniels

Tacoma, Wash., April 2 - HSBC USA Inc. priced $70.05 million of 0% Capped Leveraged Index Return Notes due March 28, 2014 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

Bank of America Merrill Lynch is the agent.

The payout at maturity will be par of $10 plus double any index gain, subject to a maximum return of 20.84%. Investors will receive par if the index declines by 10% or less and will lose 1% for every 1% that it declines beyond 10%.

The final index level will be the average of index's closing levels on the five trading days ending March 25, 2014.

Issuer:	HSBC USA Inc.
Issue:	Capped Leveraged Index Return Notes
Underlying index:	S&P 500
Amount:	$70,052,310
Maturity:	March 28, 2014
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus double any gain in the index, subject to maximum return of 20.84%; par if index falls by up to 10%; exposure to losses beyond 10%
Initial index level:	1,403.28
Final index level:	Average of index's closing levels on five trading days ending March 25, 2014
Pricing date:	March 29
Settlement date:	April 5
Agent:	Bank of America Merrill Lynch
Fees:	2%
Cusip:	40433K363

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