New Issue: HSBC prices $1.97 million income plus notes on stocks with 9.5% potential coupon

By Marisa Wong

Madison, Wis., Nov. 25 - HSBC USA Inc. priced $1.97 million of income plus notes due Nov. 27, 2020 linked to a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the common stocks of Lorillard, Inc., Merck & Co., Inc., Microsoft Corp., Travelers Cos., Inc. and Verizon Communications Inc.

Interest is payable annually. The interest rate will be 1% plus (a) 8.5% if each basket stock closes at or above its initial share price on the valuation date or (b) 0% otherwise.

The payout at maturity will be par plus the last coupon payment.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Income plus notes
Underlying stocks:	Lorillard, Inc. (NYSE: LO), Merck & Co., Inc. (NYSE: MRK), Microsoft Corp. (Nasdaq: MSFT), Travelers Cos., Inc. (NYSE: TRV) and Verizon Communications Inc. (NYSE: VZ)
Amount:	$1,965,000
Maturity:	Nov. 27, 2020
Coupon:	9.5% if each basket stock closes at or above its initial share price on the valuation date or 1% otherwise; payable annually
Price:	Par
Payout at maturity:	Par plus final coupon
Initial share prices:	$52.25 for Lorillard, $48.62 for Merck, $37.39 for Microsoft, $89.22 for Travelers, $50.38 for Verizon
Pricing date:	Nov. 21
Settlement date:	Nov. 26
Agent:	HSBC Securities (USA) Inc.
Fees:	4.2%
Cusip:	40432XN49

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