New Issue: HSBC prices $1.06 million annual income opportunity notes linked to industry titans

By Susanna Moon

Chicago, April 26 - HSBC USA Inc. priced $1.06 million of annual income opportunity notes due April 24, 2019 linked to a basket of 10 common stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The underlying companies are Consolidated Edison, Inc., Darden Restaurants, Inc., Exelon Corp., Goldcorp Inc., Lorillard, Inc., Mattel, Inc., Nvidia Corp., Southern Co., Verizon Communications Inc. and Waste Management, Inc.

Interest is payable annually and will equal the greater of 0.5% and the average of the performances of the basket stocks.

A stock's performance will be equal to the auto cap rate, 7%, if its return is greater than or equal to zero. If a stock's return is negative, its performance will be the greater of its return and negative 15%.

The payout at maturity will be par.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Annual income opportunity notes
Underlying stocks:	Consolidated Edison, Inc., Darden Restaurants, Inc., Exelon Corp., Goldcorp Inc., Lorillard, Inc., Mattel, Inc., Nvidia Corp., Southern Co., Verizon Communications Inc. and Waste Management, Inc.
Amount:	$1,055,000
Maturity:	April 24, 2019
Coupon:	Average of performances of basket stocks, subject to minimum interest rate of 0.5%; payable annually
Stock performance:	7% if stock's return is greater than or equal to zero; otherwise, greater of stock return and negative 15%
Price:	Par
Payout at maturity:	Par
Pricing date:	April 24
Settlement date:	April 29
Agent:	HSBC Securities (USA) Inc.
Fees:	4.25%
Cusip:	40432XDF5

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