New Issue: HSBC prices $421,000 knock-out buffer notes on four Asian currencies

By Marisa Wong

Madison, Wis., Oct. 16 - HSBC USA Inc. priced $421,000 of 0% knock-out buffer notes due April 21, 2014 linked to a basket of four currencies relative to the dollar, according to a 424B2 with the Securities and Exchange Commission.

The equally weighted basket components include the Indian rupee, the Indonesian rupiah, the Korean won and the Malaysian ringgitt.

A knock-out event occurs if the basket falls by more than 10% relative to the initial level on the final valuation date.

If a knock-out event occurs, the payout at maturity will be par plus the basket return, with full exposure to losses.

Otherwise, the payout will be par plus the basket return, subject to a contingent minimum return of 10.4%.

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

Issuer:	HSBC USA Inc.
Issue:	Knock-out buffer notes
Underlying currencies:	Indian rupee, Indonesian rupiah, Korean won and Malaysian ringgitt, all equally weighted and relative to the dollar
Amount:	$421,000
Maturity date:	April 21, 2014
Coupon:	0%
Price:	Par
Payout at maturity:	If basket falls by more than 10% on April 11, 2014, par plus basket return, with full exposure to losses; otherwise par plus basket return, with floor of 10.4%
Initial exchange rates:	52.70 for rupee, 9,620 for rupiah, 1,111.10 for won and 3.0598 for ringgit
Pricing date:	Oct. 12
Settlement date:	Oct. 19
Underwriter:	HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as placement agent
Fees:	1.25%
Cusip:	4042K16Z1

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