New Issue: HSBC prices $4.4 million return enhanced notes linked to eight stocks via JPMorgan

By Angela McDaniels

Tacoma, Wash., April 27 - HSBC USA Inc. priced $4.4 million of 0% return enhanced notes due May 12, 2011 linked to a basket of energy stocks, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes equal weights of Chesapeake Energy Corp., El Paso Corp., Southwestern Energy Co., Petrohawk Energy Corp., Pioneer Natural Resources Co., Range Resources Corp., SandRidge Energy, Inc. and Cabot Oil & Gas Corp.

The payout at maturity will be par plus triple any basket gain, up to a maximum return of 29.85%. Investors will be exposed to any basket decline.

J.P. Morgan Securities Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Return enhanced notes
Underlying stocks:	Chesapeake Energy Corp., El Paso Corp., Southwestern Energy Co., Petrohawk Energy Corp., Pioneer Natural Resources Co., Range Resources Corp., SandRidge Energy, Inc. and Cabot Oil & Gas Corp., equally weighted
Amount:	$4,403,000
Maturity:	May 12, 2011
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus triple any basket gain, up to maximum return of 29.85%; exposure to any basket decline
Initial share prices:	$24.89 for Chesapeake; $12.51 for El Paso; $43.09 for Southwestern; $23.23 for Petrohawk; $66.09 for Pioneer; $50.78 for Range Resources; $7.79 for SandRidge; $39.90 for Cabot
Final share prices:	For each stock, the average of its closing share prices on the five trading days ending May 9, 2011
Pricing date:	April 23
Settlement date:	April 28
Agent:	J.P. Morgan Securities Inc.
Fees:	1%
Cusip:	4042K0W43

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