New Issue: HSBC USA prices $16.09 million return optimization notes linked to MSCI EAFE via UBS

By Jennifer Chiou

New York, April 29 - HSBC USA Inc. priced a $16.09 million issue of 0% return optimization securities with contingent protection due Oct. 30, 2009 linked to the MSCI EAFE index, according to a filing with the Securities and Exchange Commission.

UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the underwriters.

If the index return is zero or positive, the payout at maturity will be par plus 200% of any index gain, capped at a maximum payout equal to 120% of par.

Investors will receive par for losses up to 10% and will share in losses beyond 10%.

Issuer:	HSBC USA Inc.
Issue:	Return optimization securities
Underlying index:	MSCI EAFE
Amount:	$16,093,840
Maturity:	Oct. 30, 2009
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus double the increase in the index, capped at maximum return of 20%; investors will receive par for losses up to 10% and will share in losses beyond 10%
Initial index level:	2,135.77
Pricing date:	April 25
Settlement date:	April 30
Underwriters:	UBS Financial Services and HSBC Securities (USA) Inc.
Fees:	1.75%

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