}
|
12-year term; Callable every four years at Issuer’s discretion
|
}
|
Quarterly fixed coupon payments that increase over the term of the Notes
|
}
|
Any payment on the Notes is subject to the credit risk of HSBC USA Inc.
|
Price to Public1
|
Fees and Commissions2
|
Proceeds to Issuer
|
|
Per Note
|
At variable prices
|
||
Total
|
At variable prices
|
HSBC USA Inc.
Callable Step-Up Rate Notes due November 1, 2023
|
![]() |
Issuer:
|
HSBC USA Inc.
|
Issuer Rating:
|
AA- (S&P), A1 (Moody’s), AA (Fitch)†
|
Principal Amount:
|
$1,000 per Note.
|
Trade Date:
|
October , 2011
|
Pricing Date:
|
October , 2011
|
Original Issue Date:
|
November 1, 2011
|
Maturity Date:
|
Expected to be November 1, 2023, or if such day is not a Business Day, the next succeeding Business Day.
|
Payment at Maturity:
|
If the Notes have not been called by us, as described below, on the Maturity Date, for each Note, we will pay you the Principal Amount of your Notes plus the final Coupon, if any.
|
Coupon:
|
With respect to each Coupon Payment Date, for each $1,000 Principal Amount of Notes, the Coupon will be calculated as $1,000 × the applicable Coupon Rate. The Coupon is paid quarterly and is based upon the applicable Coupon Rate. See “Coupon” on page FWP-3 of this free writing prospectus.
|
Coupon Rate:
|
The applicable Coupon Rate specified below will be calculated on a 30/360 unadjusted basis.
|
From (and including)
|
To (but excluding)
|
Coupon Rate
|
|
November 1, 2011
|
November 1, 2015
|
3.50% per annum
|
|
November 1, 2015
|
November 1, 2019
|
4.25% per annum
|
|
November 1, 2019
|
November 1, 2023
|
5.50% per annum
|
The dates above refer to originally scheduled Coupon Payment Dates and may be postponed as described below.
|
|
Coupon Payment Dates:
|
The 1st calendar day of each February, May, August and November commencing on February 1, 2012, up to and including the Maturity Date or the Call Payment Date, as applicable, provided that if any such day is not a Business Day, the relevant Coupon Payment Date or Call Payment Date, as applicable, shall be the next succeeding Business Day as if made on the date the payment was due, and no interest will accrue on the amount payable for the period from and after such Coupon Payment Date.
|
Call Provision:
|
The Notes are redeemable at our option, in whole, but not in part, on the Coupon Payment Dates corresponding to November 1, 2015 and November 1, 2019, upon notice on or before the corresponding Call Notice Date, at an amount that will equal the Principal Amount of your Notes plus the Coupon applicable to such Coupon Payment Date. If the Notes are called prior to the Maturity Date, you will be entitled to receive only the Principal Amount of the Notes and any Coupon payment in respect of Coupon Payment Dates ended on or before the Call Payment Date. In this case, you will lose the opportunity to continue to be paid Coupons in respect of Coupon Payment Dates ending after the Call Payment Date.
|
Call Notice Dates:
|
10 Business Days prior to the corresponding Coupon Payment Date.
|
Call Payment Date:
|
The Coupon Payment Date, if any, for which we have given notice, on or before the corresponding Call Notice Date, that we elect to call the Notes.
|
Business Day:
|
Any day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions are authorized or required by law or regulation to close in the City of New York.
|
CUSIP/ISIN:
|
4042K1QP1 /
|
Form of Notes:
|
Book-Entry
|
Listing:
|
The Notes will not be listed on any U.S. securities exchange or quotation system.
|
}
|
The prospectus supplement at: http://www.sec.gov/Archives/edgar/data/83246/000114420409019785/v145824_424b2.htm
|
}
|
}
|
You are willing to make an investment that may be called on November 1, 2015 or November 1, 2019. If we call your Notes, you will receive the Principal Amount of your Notes and the relevant Coupon on the Call Payment Date and will not receive any further Coupon payments.
|
}
|
You are willing to invest in the Notes based on the fact that your maximum potential return is the Coupon being offered with respect to your Notes.
|
}
|
You do not seek an investment for which there will be an active secondary market.
|
}
|
You are willing to hold the Notes to maturity.
|
}
|
You are comfortable with the creditworthiness of HSBC, as issuer of the Notes.
|
}
|
You are unwilling to invest in the Notes based on the applicable Coupon Rate corresponding to each Coupon Payment Date.
|
}
|
You are unwilling to make an investment in Notes that we can call on November 1, 2015 or November 1, 2019, thereby potentially limiting your return on the Notes.
|
}
|
You are unwilling to invest in the Notes based on the fact that your maximum potential return is the Coupon being offered with respect to your Notes.
|
}
|
You prefer the lower risk, and therefore accept the potentially lower returns, of conventional debt securities with comparable maturities issued by HSBC or another issuer with a similar credit rating.
|
}
|
You seek an investment for which there will be an active secondary market.
|
}
|
You are unable or unwilling to hold the Notes to maturity.
|
}
|
You are not willing or are unable to assume the credit risk associated with HSBC, as issuer of the Notes.
|
}
|
Principal Amount:
|
$1,000
|
}
|
Coupon Rate:
|
Years 1-4: 3.50% per annum (30/360)
|
}
|
The Notes are held until maturity and are not called early.
|
Year
|
Coupon Rate
|
Coupon
|
Yield to Worst
|
1 - 4
|
3.50%
|
$35.00
|
3.50%
|
5 - 8
|
4.25%
|
$42.50
|
3.84%
|
9 - 12
|
5.50%
|
$55.00
|
4.30%
|
Total Return at Maturity:
|
4.30%
|
TABLE OF CONTENTS
|
You should only rely on the information contained in this free writing prospectus, the accompanying prospectus supplement and prospectus. We have not authorized anyone to provide you with information or to make any representation to you that is not contained in this free writing prospectus, the accompanying prospectus supplement and prospectus. If anyone provides you with different or inconsistent information, you should not rely on it. This free writing prospectus, the accompanying prospectus supplement and prospectus are not an offer to sell these Notes, and these documents are not soliciting an offer to buy these Notes, in any jurisdiction where the offer or sale is not permitted. You should not, under any circumstances, assume that the information in this free writing prospectus, the accompanying prospectus supplement and prospectus is correct on any date after their respective dates.
HSBC USA Inc.
$ Callable Step-Up Rate Notes
due November 1, 2023
October 14, 2011
FREE WRITING
PROSPECTUS
|
||
Free Writing Prospectus
|
|||
General
|
FWP-3
|
||
Investor Suitability
|
FWP-4
|
||
Risk Factors
|
FWP-5
|
||
Illustrative Example
|
FWP-7
|
||
Events of Default and Acceleration
|
FWP-8
|
||
Supplemental Plan of Distribution (Conflicts of Interest)
|
FWP-8
|
||
Certain U.S. Federal Income Tax Considerations
|
FWP-8
|
||
Prospectus Supplement
|
|||
Risk Factors
|
S-3
|
||
Pricing Supplement
|
S-16
|
||
Description of Notes
|
S-16
|
||
Sponsors or Issuers and Reference Asset
|
S-37
|
||
Use of Proceeds and Hedging
|
S-37
|
||
Certain ERISA
|
S-38
|
||
Certain U.S. Federal Income Tax Considerations
|
S-39
|
||
Supplemental Plan of Distribution
|
S-52
|
||
Prospectus
|
|||
About this Prospectus
|
2
|
||
Special Note Regarding Forward-Looking Statements
|
2
|
||
HSBC USA Inc.
|
3
|
||
Use of Proceeds
|
3
|
||
Description of Debt Securities
|
4
|
||
Description of Preferred Stock
|
16
|
||
Description of Warrants
|
22
|
||
Description of Purchase Contracts
|
26
|
||
Description of Units
|
29
|
||
Book-Entry Procedures
|
32
|
||
Limitations on Issuances in Bearer Form
|
36
|
||
Certain U.S. Federal Income Tax Considerations Relating to Debt Securities
|
37
|
||
Plan of Distribution
|
52
|
||
Notice to Canadian Investors
|
54
|
||
Certain ERISA Matters
|
58
|
||
Where You Can Find More Information
|
59
|
||
Legal Opinions
|
59
|
||
Experts
|
59
|
||
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