New Issue: HSBC prices $6.18 million Stars linked to S&P 500 with 5% buffer

By Angela McDaniels

Tacoma, Wash., July 29 - HSBC USA Inc. priced $6.18 million of 0% Strategic Accelerated Redemption Securities due Aug. 4, 2014 linked to the S&P 500 index, according to a 424B2 filing with the Securities and Exchange Commission.

The notes will be called at par of $10 plus a call premium of 6% per year if the index closes at or above its initial level on Jan. 17, 2014, April 17, 2014 or July 28, 2014.

If the notes are not called, investors will receive par if the index declines by 5% or less. They will lose 1% for every 1% that the index declines beyond 5%.

BofA Merrill Lynch is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Strategic Accelerated Redemption Securities
Underlying index:	S&P 500
Amount:	$6,182,950
Maturity:	Aug. 4, 2014
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par if index declines by 5% or less; 1% loss for every 1% that index declines beyond 5%
Call:	Automatically at par plus 6% per year if index closes at or above initial level on Jan. 17, 2014, April 17, 2014 or July 28, 2014
Initial index level:	1,690.25
Pricing date:	July 25
Settlement date:	Aug. 1
Underwriter:	BofA Merrill Lynch
Fees:	1.25%
Cusip:	40433X431

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