New Issue: HSBC prices $5.78 million leveraged contingent buffered notes linked to MSCI EAFE

By Angela McDaniels

Tacoma, Wash., July 23 - HSBC USA Inc. priced $5.78 million of 0% leveraged contingent buffered enhanced notes due Aug. 6, 2014 linked to the MSCI EAFE index, according to a 424B2 filing with the Securities and Exchange Commission.

If the index finishes at or above the 90% knock-out level, the payout at maturity will be par plus double the index return, subject to a minimum return of 0% and a maximum return of 16.7%. Otherwise, investors will be fully exposed to the index's decline from the initial level.

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

Issuer:	HSBC USA Inc.
Issue:	Leveraged contingent buffered enhanced notes
Underlying index:	MSCI EAFE
Amount:	$5,782,000
Maturity:	Aug. 6, 2014
Coupon:	0%
Price:	Par
Payout at maturity:	If index finishes at or above 90% knock-out level, par plus 200% of index return, subject to minimum return of 0% and maximum return of 16.7%; otherwise, full exposure to index's decline from initial level
Initial index level:	1,733.47
Final index level:	Average of index's closing levels on July 28, 2014, July 29, 2014, July 30, 2014, July 31, 2014 and Aug. 1, 2014
Pricing date:	July 19
Settlement date:	July 24
Underwriter:	HSBC Securities (USA) Inc.
Agent:	J.P. Morgan Securities LLC
Fees:	1%
Cusip:	40432XJ36

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