New Issue: HSBC prices $1.19 million leveraged contingent barrier notes tied to peso vs. euro

By Marisa Wong

Madison, Wis., March 18 – HSBC USA Inc. priced $1.19 million of 0% leveraged contingent barrier enhanced notes due March 20, 2017 linked to the Mexican peso relative to the euro, according to a 424B2 filing with the Securities and Exchange Commission.

If the currency return is at least 80% of the initial level, the payout at maturity will be par plus 5 times the return, up to a maximum return of 52.5% and a minimum payment of par.

Otherwise, investors will be fully exposed to any losses.

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

Issuer:	HSBC USA Inc.
Issue:	Leveraged contingent barrier enhanced notes
Underlying currency:	Mexican peso relative to euro
Amount:	$1,185,000
Maturity:	March 20, 2017
Coupon:	0%
Price:	Par
Payout at maturity:	If currency return is at least 80% of initial level, par plus 5 times return, up to a maximum return of 52.5% and a minimum payment of par; otherwise, investors will be fully exposed to any losses
Initial spot rate:	16.3057
Pricing date:	March 13
Settlement date:	March 18
Underwriter:	HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as agent
Fees:	1.5%
Cusip:	40433BH68

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