New Issue: HSBC prices $2.11 million knock-out buffer notes on Euro Stoxx 50

By Marisa Wong

Madison, Wis., Oct. 16 - HSBC USA Inc. priced $2.11 million of 0% knock-out buffer notes due April 16, 2014 linked to the Euro Stoxx 50 index, according to a 424B2 filing with the Securities and Exchange Commission.

A knock-out event occurs if the index's closing level is less than the initial index level by more than 30% on any day during the life of the notes.

If a knock-out event does not occur, the payout at maturity will be par plus the greater of the index return and 7.3%. If a knock-out event occurs, the payout will be par plus the index return, which may be positive or negative.

HSBC Securities (USA) Inc. is the underwriter with J.P. Morgan Securities LLC as placement agent.

Issuer:	HSBC USA Inc.
Issue:	Knock-out buffer notes
Underlying index:	Euro Stoxx 50
Amount:	$2,105,000
Maturity:	April 16, 2014
Coupon:	0%
Price:	Par
Payout at maturity:	If knock-out event does not occur, par plus any index gain, floor of 7.3%; otherwise, par plus return with full exposure to any losses
Knock-out event:	If index closes below 70% of initial level on any day during life of notes
Initial index level:	2,469.09
Pricing date:	Oct. 12
Settlement date:	Oct. 17
Underwriter:	HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as placement agent
Fees:	1.25%
Cusip:	4042K17A5

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