New Issue: HSBC sells $4.29 million notes with contingent return linked to index basket via UBS

By E. Janene Geiss

Philadelphia, June 27 - HSBC USA Inc. priced a $4.29 million issue of 0% performance securities with contingent return due June 30, 2011 linked to the S&P 500 index via UBS Financial Services Inc. and HSBC USA Inc., according to an FWP filing with the Securities and Exchange Commission.

If the index does not close below the trigger level - 75% of the initial level - during the life of the notes, the payout will be par of $10 plus the greater of the index return and a contingent return of 20.7%.

If the trigger is hit during the life of the notes, investors will receive par multiplied by the index return.

Issuer:	HSBC USA Inc.
Issue:	Performance securities with contingent return
Underlying index:	S&P 500 index
Amount:	$4,285,030
Maturity:	June 30, 2011
Coupon:	0%
Price:	Par
Payout at maturity:	Par of $10 plus the greater of the index return or a contingent return of 20.7% if the index never declines by more than 75% of its initial level during the life of the notes; if the trigger is hit, par times the index return
Initial index level:	1,321.97
Trigger level:	75% of initial index level
Contingent return:	20.7%
Pricing date:	June 25
Settlement date:	June 30
Agent:	UBS Financial Services Inc. and HSBC USA Inc.
Fees:	2.5%

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