New Issue: HSBC prices $1.1 million buffered AMPS linked to index, fund basket

By Tali Rackner

Norfolk, Va., Dec. 8 – HSBC USA Inc. priced $1.1 million of 0% buffered Accelerated Market Participation Securities due Dec. 4, 2017 linked to a basket of indexes and a fund, according to a 424B2 filing with the Securities and Exchange Commission.

The basket consists of the Euro Stoxx 50 index with a 40% weight, the S&P MidCap 400 index with a 40% weight and the iShares MSCI Emerging Markets exchange-traded fund with a 20% weight.

If the basket return is positive, the payout at maturity will be par plus 1.15 times the fund gain, subject to a maximum return of 19%.

Investors will receive par if the basket declines by 10% or less and will lose 1% for every 1% that it declines beyond 10%.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Buffered Accelerated Market Participation Securities
Underlying indexes, fund:	Euro Stoxx 50 index (40%), the S&P MidCap 400 index (40%) and the iShares MSCI Emerging Markets exchange-traded fund (20%)
Amount:	$1.1 million
Maturity:	Dec. 4, 2017
Coupon:	0%
Price:	Par of $1,000
Payout at maturity:	Par plus 1.15 times any basket gain, subject to a maximum return of 19%; par if the basket declines by 10% or less; 1% loss for every 1% that it declines beyond 10%
Initial values:	3,479.64 for Euro Stoxx, 1,473.14 for S&P MidCap and $34.25 for iShares MSCI EM
Pricing date:	Dec. 1
Settlement date:	Dec. 4
Agent:	HSBC Securities (USA) Inc.
Fees:	1.5%
Cusip:	40433UEX0

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