New Issue: HSBC prices $1.5 million annual income opportunity notes on 10 stocks

By Jennifer Chiou

New York, Jan. 27 - HSBC USA Inc. priced $1,501,000 of annual income opportunity notes with auto cap due Jan. 30, 2019 linked to a basket of 10 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying stocks are Dow Chemical Co., Eli Lilly and Co., Freeport-McMoRan Copper & Gold Inc., Goldcorp Inc., Kraft Foods Inc., McDonald's Corp., Paychex, Inc., Raytheon Co., Reynolds American Inc. and Verizon Communications Inc.

A stock's performance will be equal to the auto cap rate if its return is greater than or equal to zero. The auto cap rate is 10%. If a stock's return is less than zero, its performance will be the greater of its return and negative 30%. The minimum coupon rate is 1% per year.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Annual income opportunity notes with auto cap
Underlying stocks:	Dow Chemical Co., Eli Lilly and Co., Freeport-McMoRan Copper & Gold Inc., Goldcorp Inc., Kraft Foods Inc., McDonald's Corp., Paychex, Inc., Raytheon Co., Reynolds American Inc. and Verizon Communications Inc.
Amount:	$1,501,000
Maturity:	Jan. 30, 2019
Coupon:	Average of the performances of the basket stocks, subject to a minimum interest rate of 1%; payable annually
Stock performance:	If stock's return is greater than or equal to zero, 10%; otherwise, greater of stock return and negative 30%
Price:	Par
Payout at maturity:	Par
Pricing date:	Jan. 25
Settlement date:	Jan. 30
Agent:	HSBC Securities (USA) Inc.
Fees:	5%
Cusip:	4042K1VE0

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