New Issue: HSBC prices $1.59 million of trigger autocallables linked to iShares Russell 2000

By Toni Weeks

San Diego, Oct. 31 - HSBC USA Inc. priced $1.59 million of 0% trigger autocallable optimization securities due Oct. 31, 2016 linked to the iShares Russell 2000 index fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the closing share price is greater than the initial price on any quarterly observation date, the notes will be called at par plus an annualized call return of 13.53%.

If the notes are not called and the final price is greater than or equal to 45% of the initial level, the payout at maturity will be par. Otherwise, investors will share fully in losses.

HSBC Securities (USA) Inc. is the underwriter, with UBS Financial Services as agent.

Issuer:	HSBC USA Inc.
Issue:	Trigger autocallable optimization securities
Underlying index:	iShares Russell 2000 index fund
Amount:	$1,589,390
Maturity:	Oct. 31, 2016
Coupon:	0%
Price:	Par of $10
Payout at maturity:	If final price is at least 45% of initial level, par; otherwise, full exposure to losses
Call:	Automatically at par plus 13.53% per year if shares close at or above initial level on any quarterly observation date; first observation date is Oct. 31, 2012
Initial index level:	$76.45
Trigger level:	$34.40, 45% of initial price
Pricing date:	Oct. 27
Settlement date:	Oct. 31
Underwriter:	HSBC Securities (USA) Inc. with UBS Financial Services Inc. as agent
Fees:	2.5%
Cusip:	40433C254

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