New Issue: HSBC prices $1.65 million income plus notes on five stocks with 0.5% coupon floor

By Susanna Moon

Chicago, July 30 - HSBC USA Inc. priced $1.65 million of income plus notes with 1% minimum coupon due July 30, 2020 linked to a basket of common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying companies are Altria Group, Inc., eBay Inc., PepsiCo, Inc., UnitedHeath Group Inc. and Wal-Mart Stores, Inc.

If every underlying stock closes above its initial level on the valuation date, the coupon will be the minimum rate of 0.5% plus a performance-based coupon of 11.5%. Otherwise, the notes will pay the minimum coupon of 0.5%.

Interest is payable annually.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Income plus notes
Underlying stocks:	Altria Group, Inc. (NYSE: MO), eBay Inc. (Nasdaq: EBAY), PepsiCo, Inc. (NYSE: PEP), UnitedHeath Group Inc. (NYSE: UNH) and Wal-Mart Stores, Inc. (NYSE: WMT)
Amount:	$1,645,000
Maturity:	July 30, 2020
Coupon:	If every underlying stock finishes above initial level, 12%; otherwise, 0.5%; payable annually
Price:	Par
Payout at maturity:	Par
Pricing dates:	July 25
Settlement date:	July 30
Agent:	HSBC Securities (USA) Inc.
Fees:	4.2%
Cusip:	40432XH53

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