New Issue: HSBC prices $19.24 million 5% buffered fixed-rate notes on Russell 2000, EAFE fund

By Toni Weeks

San Luis Obispo, Calif., Sept. 8 – HSBC USA Inc. priced $19.24 million of 5% buffered fixed-rate notes due Dec. 9, 2015 linked to the Russell 2000 index and the iShares MSCI EAFE exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

Interest is payable quarterly.

If the least-performing asset finishes at or above 85% of the initial level, the payout at maturity will be par.

Otherwise, investors will share in losses at a rate of 1.17647% per 1% drop beyond the 15% buffer.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Buffered fixed-rate notes
Underlying components:	Russell 2000 index, iShares MSCI EAFE ETF
Amount:	$19,244,000
Maturity:	Dec. 9, 2015
Coupon:	5%, payable quarterly
Price:	Par
Payout at maturity:	If least-performing component finishes at or above 85% of initial level, par; otherwise, 1.17647% loss for every 1% decline of least-performing component beyond 15%
Initial levels:	1,167.214 for Russell, $66.99 for ETF
Buffer level:	15%
Pricing date:	Sept. 4
Settlement date:	Sept. 9
Underwriter:	HSBC Securities (USA) Inc.
Fees:	0.05%
Cusip:	40433BNK0

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