New Issue: HSBC prices $5.42 million long short notes linked to energy, consumer discretionary index

By Angela McDaniels

Tacoma, Wash., Dec. 2 - HSBC USA Inc. priced $5.42 million of 0% long short notes due May 26, 2015 linked to the Energy Select Sector/Consumer Discretionary Select Sector Long Short index, according to a 424B2 filing with the Securities and Exchange Commission.

The composite index consists of a leveraged long position in the Energy Select Sector index and a short position in the Consumer Discretionary Select Sector index.

The long component has an initial weight of 150%, and the short component has an initial weight of negative 50%.

The payout at maturity will be par of $10 plus the index return. If that return is negative, investors will receive less than par.

BofA Merrill Lynch is the agent.

Issuer:	HSBC USA Inc.
Issue:	Long short notes
Underlying index:	Energy Select Sector/Consumer Discretionary Select Sector Long Short index
Amount:	$5,417,490
Maturity:	May 26, 2015
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus index return, which may be negative
Initial levels:	872.46 for energy index and 655.02 for consumer discretionary index
Final index level:	Average of index's closing levels on May 14, 2015, May 15, 2015, May 18, 2015, May 19, 2015 and May 20, 2015
Pricing date:	Nov. 26
Settlement date:	Dec. 3
Agent:	BofA Merrill Lynch
Fees:	2%
Cusip:	40434B800

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