New Issue: HSBC prices $1 million contingent buffered notes linked to iShares MSCI EM

By Angela McDaniels

Tacoma, Wash., Sept. 11 - HSBC USA Inc. priced $1 million of 0% contingent buffered notes due Sept. 12, 2016 linked to the iShares MSCI Emerging Markets index fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the exchange-traded fund's final share price is at least 65% of the initial share price, the payout at maturity will be par plus the ETF return, subject to a minimum payout of par and a maximum payout of $1,550 per $1,000 principal amount of notes. Otherwise, investors will lose 1% for every 1% that the final share price is less than the initial share price.

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

Issuer:	HSBC USA Inc.
Issue:	Contingent buffered notes
Underlying ETF:	iShares MSCI Emerging Markets index fund
Amount:	$1 million
Maturity:	Sept. 12, 2016
Coupon:	0%
Price:	Par
Payout at maturity:	If final share price is at least 65% of initial share price, par plus ETF return, subject to minimum payout of par and maximum payout of $1,550 per note; otherwise, 1% loss for every 1% that final share price is less than initial share price
Initial share price:	$41.03
Final share price:	Average of ETF's closing share prices on Aug. 31, 2016, Sept. 1, 2016, Sept. 2, 2016, Sept. 6, 2016, and Sept. 7, 2016
Pricing date:	Sept. 9
Settlement date:	Sept. 12
Underwriter:	HSBC Securities (USA) Inc.
Agent:	J.P. Morgan Securities LLC
Fees:	2%
Cusip:	40432XKR1

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