New Issue: HSBC prices $28.84 million knock-out buffer notes linked to currencies

By Angela McDaniels

Tacoma, Wash., March 8 - HSBC USA Inc. priced $28.84 million of 0% knock-out buffer notes due Sept. 13, 2013 linked to a basket of currencies, according to a 424B2 filing with the Securities and Exchange Commission.

The equally weighted basket includes the Brazilian real, the Mexican peso and the Canadian dollar. The basket's level will increase if it appreciates relative to the U.S. dollar.

If the closing level of the basket on Sept. 6, 2013 is less than 80% of the initial basket level, investors will be fully exposed to the percentage decline of the basket. Otherwise, the payout at maturity will be par plus the greater of the basket return and 12.3%.

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

Issuer:	HSBC USA Inc.
Issue:	Knock-out buffer notes
Underlying currencies:	Brazilian real, the Mexican peso and the Canadian dollar, equally weighted
Amount:	$28,843,000
Maturity:	Sept. 13, 2013
Coupon:	0%
Price:	Par
Payout at maturity:	If final basket level is less than 80% of initial basket level, full exposure to percentage decline of basket; otherwise, par plus greater of basket return and 12.3%
Initial spot rates:	1.7556 for real; 12.9817 for peso; 1.0017 for Canadian dollar
Pricing date:	March 6
Settlement date:	March 13
Underwriter:	HSBC Securities (USA) Inc.
Dealer:	J.P. Morgan Securities LLC
Fees:	1.25%
Cusip:	4042K1ZM8

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