New Issue: HSBC prices $16.42 million buffered performance notes linked to index, fund basket

By Toni Weeks

San Diego, March 29 - HSBC USA Inc. priced $16.42 million 0% buffered performance securities due Sept. 30, 2014 linked to a basket of two indexes and an exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying basket components are the S&P 500 index, with a 33.34% weight, the iShares MSCI Emerging Markets index fund, with a 33.33% weight, and the Euro Stoxx 50 index, with a 33.33% weight.

The payout at maturity will be par of $10.00 plus any basket gain. Investors will receive par if the basket falls by up to 15% and will lose 1% for every 1% decline beyond 15%.

HSBC Securities (USA) Inc. is the agent. It will use its fees to pay a selling concession to Morgan Stanley Smith Barney LLC.

Issuer:	HSBC USA Inc.
Issue:	Buffered performance securities
Underlying components:	S&P 500 index, weighted at 33.34%, iShares MSCI Emerging Markets index fund, weighted at 33.33%, Euro Stoxx 50 index, weighted at 33.33%
Amount:	$16,418,840
Maturity date:	Sept. 30, 2014
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus basket gain, par if basket falls up to 15%, 1% loss for every 1% basket decline beyond 15%
Initial values:	1,313.80 for the S&P 500, $47.34 for Emerging Markets, 2,911.33 for Euro Stoxx
Pricing date:	March 25
Settlement date:	March 30
Agent:	HSBC Securities (USA) Inc., paying selling concessions to Morgan Stanley Smith Barney LLC
Fees:	3%
Cusip:	40432R112

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