New Issue: HSBC prices $3 million income plus notes linked to basket of five stocks

By Susanna Moon

Chicago, June 10 - HSBC USA Inc. priced $3 million income plus notes due June 13, 2018 linked to a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying stocks are Altria Group, Inc., Eli Lilly & Co., International Business Machines Corp., Lockheed Martin Corp. and McDonald's Corp.

The coupon will be 5.25% for the first year. After that, the coupon will be 1.25% unless every stock closes at or above its initial share price on the coupon valuation date, in which case the rate will be 10.25%. Interest will be payable annually.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Income plus notes
Underlying stocks:	Altria Group, Inc., Eli Lilly & Co., International Business Machines Corp., Lockheed Martin Corp. and McDonald's Corp.
Amount:	$3 million
Maturity:	June 13, 2018
Coupon:	5.25% for one year; then 1.25% unless every stock closes at or above its initial share price on the coupon valuation date, in which case the rate will be 10.25%; payable annually
Price:	Par
Payout at maturity:	Par
Initial prices:	$27.29 for Altria, $37.27 for Eli Lilly, $164.34 for IBM, $77.12 for Lockheed Martin and $81.15 for McDonald's
Pricing date:	June 8
Settlement date:	June 13
Agent:	HSBC Securities (USA) Inc.
Fees:	3%
Cusip:	4042K1JT1

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