New Issue: HSBC prices $2 million annual income opportunity securities linked to nine ADSs

By Marisa Wong

Madison, Wis., Aug. 9 - HSBC USA Inc. priced $2 million of annual income opportunity securities with auto cap due August 17, 2016 linked to a basket of American Depositary Shares, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the ADSs of Canon Inc., China Unicom (Hong Kong) Ltd., Chunghwa Telecom Co., Ltd., CNOOC Ltd., Icici Bank Ltd., LG Display Co., Ltd., Nippon Telegraph and Telephone Corp., SK Telecom Co., Ltd. and Tata Motors Ltd.

Interest is payable annually and will equal the average of the performances of the basket ADSs, subject to a floor of zero.

If a basket component's return is zero or positive, its performance will be fixed at 8.75%. If a basket component's return is negative, its performance will be the ADS return.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Annual income opportunity securities with auto cap
Underlying ADSs:	Canon Inc., China Unicom (Hong Kong) Ltd., Chunghwa Telecom Co., Ltd., CNOOC Ltd., Icici Bank Ltd., LG Display Co., Ltd., Nippon Telegraph and Telephone Corp., SK Telecom Co., Ltd. and Tata Motors Ltd.
Amount:	$2 million
Maturity:	Aug. 17, 2016
Coupon:	Average of the performances of the basket ADSs, subject to a floor of 0%; if the ADS return is positive, its performance will be 8.75%; otherwise, its performance will be the ADS return; payable annually
Price:	Par
Payout at maturity:	Par
Pricing date:	Aug. 5
Settlement date:	Aug. 17
Agent:	HSBC Securities (USA) Inc.
Fees:	2%
Cusip:	4042K04V4

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