HSBC to price knock-out buffer notes linked to three currencies

By Jennifer Chiou

New York, March 14 - HSBC USA Inc. plans to price 0% knock-out buffer notes due Sept. 22, 2014 linked to the performance of a basket of currencies relative to the dollar, according to an FWP with the Securities and Exchange Commission.

The equally weighted basket currencies are the Brazilian real, the Chilean peso and the Mexican peso.

A knock-out event occurs if the basket has depreciated, compared to the initial basket level, by more than 15% at maturity.

If a knock-out event occurs, investors will be fully exposed to the basket's decline. Otherwise, the payout will be par plus the greater of the basket return and 9.2%.

The notes (Cusip: 40432XCY5) are expected to price on March 15 and settle on March 22.

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

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