New Issue: HSBC prices $4.2 million knock-out buffer notes on three currencies

By Jennifer Chiou

New York, April 8 - HSBC USA Inc. priced $4.2 million of 0% knock-out buffer notes due Oct. 14, 2014 linked to the performance of a basket of currencies relative to the dollar, according to a 424B2 filing 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 8.65%.

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

Issuer:	HSBC USA Inc.
Issue:	Knock-out buffer notes
Underlying currencies:	Brazilian real, Chilean peso and Mexican peso, equally weighted and measured relative to dollar
Amount:	$4,203,000
Maturity:	Oct. 14, 2014
Coupon:	0%
Price:	Par
Payout at maturity:	If basket has depreciated by more than 15% at maturity, full exposure to basket's decline; otherwise, par plus greater of basket return and 8.65%
Initial spot rates:	2.0035 for Brazilian real, 469.28 for Chilean peso, 12.28115 for Mexican peso
Pricing date:	April 5
Settlement date:	April 12
Underwriter:	HSBC Securities (USA) Inc.
Dealer:	J.P. Morgan Securities LLC
Fees:	1.25%
Cusip:	40432XE64

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