New Issue: HSBC prices $3.06 million knock-out buffer notes tied to Brazilian real

By Angela McDaniels

Tacoma, Wash., Feb. 20 - HSBC USA Inc. priced $3.06 million of 0% knock-out buffer notes due March 4, 2014 linked to the performance of the Brazilian real relative to the dollar, according to a 424B2 filing with the Securities and Exchange Commission.

A knock-out event occurs if the real has depreciated, as compared to the initial spot rate, by more than 10% on Feb. 25, 2014.

If a knock-out event does not occur, the payout at maturity will be par plus the greater of 7.15% and the currency return. If a knock-out event occurs, investors will be fully exposed to the real's depreciation.

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 currency:	Brazilian real
Amount:	$3,055,000
Maturity:	March 4, 2014
Coupon:	0%
Price:	Par
Payout at maturity:	If real has depreciated, as compared to initial spot rate, by more than 10% on Feb. 25, 2014, full exposure to depreciation; otherwise, par plus greater of 7.15% and currency return
Initial spot rate:	1.96 reais per dollar
Pricing date:	Feb. 15
Settlement date:	Feb. 25
Underwriter:	HSBC Securities (USA) Inc.
Dealer:	J.P. Morgan Securities LLC
Fees:	1%
Cusip:	40432XBG5

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