New Issue: HSBC prices $6.36 million 12.25% yield optimization notes linked to Delta via UBS

By Jennifer Chiou

New York, Feb. 26 - HSBC USA Inc. priced $6.36 million of 12.25% yield optimization notes with contingent protection due Feb. 28, 2011 linked to the common stock of Delta Air Lines, Inc., according to a 424B2 filing with the Securities and Exchange Commission.

Each note priced at par of $12.75, which is equal to the closing price of Delta stock on the pricing date.

Interest is payable monthly.

If the final share price of Delta stock is greater than or equal to 55% of the initial price, the payout at maturity will be par. Otherwise, the payout will be one Delta share per note.

UBS Financial Services Inc. and HSBC USA Inc. are the underwriters.

Issuer:	HSBC USA Inc.
Issue:	Yield optimization notes with contingent protection
Underlying stock:	Delta Air Lines, Inc. (Symbol: DAL)
Amount:	$6,359,419.50
Maturity:	Feb. 28, 2011
Coupon:	12.25%, payable monthly
Price:	Par of $12.75
Payout at maturity:	If Delta shares finish below trigger price, one Delta share; otherwise, par
Initial share price:	$12.75
Trigger price:	$7.01, 55% of initial price
Pricing date:	Feb. 24
Settlement date:	Feb. 26
Underwriters:	UBS Financial Services Inc. and HSBC USA Inc.
Fees:	0.2%
Cusip:	4042EP172

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