New Issue: HSBC prices $17.17 million of one-year Stars linked to S&P 500

By Wendy Van Sickle

Columbus, Ohio, July 11 – HSBC USA Inc. priced $17.17 million of 0% Strategic Accelerated Redemption Securities due July 14, 2017 linked to the S&P 500 index, according to a 424B2 filed with the Securities and Exchange Commission.

The notes will be called at par of $10 plus an annual call premium of 7.1% if the index closes at or above its initial level on any quarterly review date.

The payout at maturity will be par unless the index finishes below negative 5%, in which case investors will have 1-to-1 exposure to losses beyond 5%.

BofA Merrill Lynch is the agent.

Issuer:	HSBC USA Inc.
Issue:	Strategic Accelerated Redemption Securities
Underlying index:	S&P 500
Amount:	$17,166,990
Maturity:	July 14, 2017
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par unless the index falls by more than 5%, in which case exposure to losses beyond 5%
Call:	At par plus 7.1% annualized if index closes at or above initial level on a quarterly review date
Initial level:	2,097.90
Pricing date:	July 7
Settlement date:	July 13
Underwriter:	BofA Merrill Lynch
Fees:	1.25%
Cusip:	40434V830

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