New Issue: HSBC sells $1.05 million knock-out buffer notes tied to currency basket

By Susanna Moon

Chicago, Nov. 20 - HSBC USA Inc. priced $1.05 million of 0% knock-out buffer notes due May 23, 2014 linked to a basket of four currencies, equally weighted, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying currencies are the Indian rupee, Indonesian rupiah, Korean won and Malaysian ringgit.

A knock-out event occurs if the basket falls by more than 10%.

If a knock-out event does not occur, the payout at maturity will be par plus the greater of any index gain and a contingent minimum return of 9.5%.

Otherwise, the payout will be par plus the index return, with exposure to any losses.

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

Issuer:	HSBC USA Inc.
Issue:	Knock-out buffer notes
Underlying basket:	Indian rupee, Indonesian rupiah, Korean won and Malaysian ringgit, equally weighted
Amount:	$1,047,000
Maturity:	May 23, 2014
Coupon:	0%
Price:	Par
Payout at maturity:	If basket falls by up to 10%, par plus any gain, floor of 9.5%; otherwise, par plus return with full exposure to any losses
Knock-out event:	If basket closes finishes below trigger level
Initial levels:	54.9915 for rupee, 9,626 for rupiah, 1,089.30 for won and 3.0728 for ringgit
Pricing date:	Nov. 16
Settlement date:	Nov. 26
Underwriter:	HSBC Securities (USA) Inc. with J.P. Morgan Securities LLC as placement agent
Fees:	1.25%
Cusip:	40432X3M1

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